The Fed chair says the 3% target "would be quite challenging" given sluggish productivity and declining labor force growth.
The 0.1% increase in the PPI last month indicates “there isn’t a significant amount of price pressures in the pipeline."
The labor market showed renewed strength in June, with nonfarm payrolls rising by 222,000 jobs.
Projected budget deficits have also increased amid ‘surprisingly weak tax collections.’
Consumption picked up in May, but the key measure of U.S. inflation grew only 1.4%.
But the Federal Reserve Chair cautions against unwinding the reforms put in place after the 2008-2009 crisis.
The growth rate of 16.1% for the six months through March is low only when compared to the previous half-year period's 21.6% rate.
U.S. shale drilling is seen as a major culprit in the oversupply.
The imbalance in investment flows and the value of goods and services traded was up 2.4% from the fourth quarter of 2016.
After years of decline, the percentage of Americans owning homes is holding steady.