Federal Reserve Chair Janet Yellen made a speech yesterday to the Economic Club of New York that will undoubtedly stimulate debate on what the world's most powerful central bank is thinking, doing and should be doing. It set out the country’s economic challenges, clarifying her thinking on “three big questions” about slack in the labor market, the trajectory of inflation and possible threats to the recovery. What also caught my attention, however, was the way Yellen addressed the uncertain outlook facing the U.S. economy and policy makers at the Fed. The crucial sentence comes right at the start of her speech: “The ... (full story)