How the Federal Reserve works

America’s top central banker sees President Trump’s agenda as a source of uncertainty for the U.S. economy.

Federal Reserve Chair Janet Yellen on Wednesday testified on Capitol Hill, where she noted the economy’s modest growth, the job market’s solid gains along with also the Fed’s plans to start selling some of the $4.4 trillion in debt along with also mortgage-backed securities on its balance sheet of which of which racked up during the financial crisis.

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nevertheless Yellen said there the economic outlook is actually unclear, given the Trump administration’s still unfulfilled promises to cut taxes, renegotiate trade deals, rebuild American infrastructure along with also slash regulations.

“Possible adjustments in fiscal along with also additional government policies here inside United States represent another source of uncertainty,” Federal Reserve Chair Janet Yellen told lawmakers.

Yellen made her comments in semiannual testimony to the House financial services committee. She faces questions via lawmakers on Wednesday along with also will testify on Thursday before a Senate committee.

Yellen’s caution over Trump’s policies echoes similar sentiments via additional world economists. The International Monetary Fund lowered its forecast for U.S. growth last month, citing Trump’s uncertain policies. The Office of Economic Cooperation along with also Development also warned of which protectionist trade policies threaten global growth.

Related: Fed raises rate in June

“Every week with the distractions of the Trump administration, fiscal policy keeps getting pushed back along with also postponed,” says Robert Frick, corporate economist at Navy Federal Credit Union. “of which’s a tremendous question mark along with also we’re not getting any closer to seeing something.”

One of the biggest questions Yellen could face on Wednesday is actually her own future.

Her term ends in February. President Trump could reappoint Yellen to another 4-year stint as Fed chair, along with also inside past he has both criticized along with also complimented her. Last September he said Yellen should be “ashamed” of herself for keeping interest rates low. In April, he told the Wall Street Journal Yellen is actually “not toast” along with also “I like her, I respect her.”

of which’s also unclear whether Yellen wants to stay in her post.

Yellen’s remarks of which week come as the Fed is actually picking up the pace of its interest rate hikes, which will eventually impact millions of Americans — via savers to home buyers to investors.

Its leaders raised rates in December, March along with also June. Prior to of which, of which had only bumped up rates once since 2008. Yellen noted in her testimony of which the Fed plans to continue to gradually raise rates.

Rate hikes are a sign of which the economy has improved upon along with also doesn’t need as much help via the Fed. Unemployment is actually down to 4.4%. In 2009, of which peaked at 10%.

sy88pgw (brand-new York) First published July 12, 2017: 11:09 AM ET