Back
25 Feb 2015
Yellen reiterates stance in day two of testimony
FXStreet (Córdoba) -Federal Reserve Chair Janet Yellen continued its testimony before the House Financial Services Committee which was an exact copy of Tuesday’s statement before the Senate Banking Committee.
Ms. Yellen answered questions from members of Congress for the second day and continued to stress that normalization of interest rates will begin when given the improvement of the employment sector, the FOMC is confident that inflation will move back toward the Fed’s 2% objective.
Yellen said she didn’t want the Fed’s discretion to be “chained” to a mechanical rule in answer to Jeb Hensarling, the chairman of the House Financial Services Committee call for a more “rules-based” monetary policy such as the Taylor rule.
She also defended Federal Reserve independence against Republican lawmakers’ criticism that the White House influences the central bank's decisions. Yellen said she doesn’t discuss monetary policy in her meetings with Treasury Secretary Lew and doesn’t coordinate with the White House.
Ms. Yellen answered questions from members of Congress for the second day and continued to stress that normalization of interest rates will begin when given the improvement of the employment sector, the FOMC is confident that inflation will move back toward the Fed’s 2% objective.
Yellen said she didn’t want the Fed’s discretion to be “chained” to a mechanical rule in answer to Jeb Hensarling, the chairman of the House Financial Services Committee call for a more “rules-based” monetary policy such as the Taylor rule.
She also defended Federal Reserve independence against Republican lawmakers’ criticism that the White House influences the central bank's decisions. Yellen said she doesn’t discuss monetary policy in her meetings with Treasury Secretary Lew and doesn’t coordinate with the White House.