Fed backs case to lift US growth potential from tax change boost

Washington

OUTGOING Federal Reserve chair Janet Yellen said the central bank would welcome and support a faster expansion of the economy stemming from changes in the tax code, provided it was the right kind of growth.

"The Fed is not trying to stifle growth," she told the Joint Economic Committee on Wednesday in what may be her final testimony to Congress as head of the central bank. "But we're worried about trends that could push inflation above our 2 per cent objective."