Yellen: Drop in oil price an 'overall plus' for economy

Federal Reserve Chair Janet Yellen told lawmakers on Wednesday that tumbling oil prices will be "a significant overall plus" for the U.S. economy.

While testifying before the House Financial Services Committee, Yellen also said the plunge in oil prices reflects "increased global supply rather than weaker global demand."

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She admitted, however, that the drop in crude oil prices  will have "negative effects on energy producers and will probably result in job losses" in the sector.

Still, Yellen said, the low oil prices "will likely be a significant overall plus, on net, for our economy."

"Primarily, that boost will arise from U.S. households having the wherewithal to increase their spending on other goods and services as they spend less on gasoline," Yellen said.