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The economy is on track for solid growth this quarter after recent weakness that was mostly weather-related, Federal Reserve chair Janet Yellen said on Wednesday.
Many recent indicators suggest a rebound in spending and production, Yellen said in prepared remarks for a joint Congressional committee.
Economists now broadly expect the economy to have contracted in the first quarter, though they also project a strong snapback in the current quarter.
At the same time, Yellen cautioned that housing activity has remained disappointing and that the labor market is still far from satisfactory.
A "high degree of monetary accommodation remains warranted," Yellen said, adding that current interest rate targets would remain low for a "considerable time."
Last month the Fed reduced its monthly bond purchases to $45 billion from $55 billion
- CNBC Staff