Yellen answers questions after her speech:

  • The most the Fed can do is help to pull in discouraged workers
  • US economy's potential to grow looks to be about 2% unless labor force grows faster
  • Central bankers understand linkages between countries
  • Nothing I said today is based on fiscal policy changes
  • China, Japan and Europe are all showing positive data
  • China's management of its currency is now better understood and that's reduced volatility
  • Continued increase in debt-to-GDP is not sustainable in the longer term
  • US debt-to-GDP is around 75%

That wraps it up. The US dollar is back at the lows of the day despite the hawkish talk. She wasn't asked about the outlook in the Q&A.