Thursday
April
24
2014
3:22 pm
Weather
  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  Classifieds
  DJ Designers
  Archives
  Advertise With Us
  About Us
 
 
 
 

Check out our archive of Dining Guides - Yum!

Yellen stands by Fed's low interest rate policies
November 14, 2013, 05:00 AM The Associated Press

WASHINGTON — Janet Yellen said Thursday that the U.S. economy has regained ground lost to Great Recession but still needs the Federal Reserve's support because unemployment remains too high at 7.3 percent.

Yellen made those comments in testimony to the Senate Banking Committee, which is considering her nomination to be the next chairman of the Federal Reserve.

Her remarks suggest that she plans to stand by the Fed's extraordinary low interest rate policies begun under current Chairman Ben Bernanke until the economy shows further improvement.

The Fed's support of the recovery is the "surest path to returning to a more normal approach to monetary policy," said Yellen.

Yellen noted that the economy is still performing far below its potential. And she points out that inflation is running below the Fed's 2 percent target.

The Fed's policies, which include three rounds of bond purchases, are credited with helping boost economic growth and lower unemployment. But they have also driven up stock prices and stoked worries about a greater risk of inflation and asset bubbles.

Despite tough questions from senators on the future of the Fed's stimulus programs, Yellen would not specify when the central bank might begin scaling back its $85 billion-per-month in bond purchases.

She only said that Fed policymakers assess the risks and benefits of the bond purchase program each time they meet.

"The committee is looking for ... signs of growth that are strong enough to promote continued progress" in the labor market. She said "there is no set time that we will decide to reduce the pace of our purchases."

Many economists believe the Fed will keep the purchase level unchanged at its upcoming meeting in December. Many say the Fed might hold off scaling back the program until its March meeting. That would allow the Fed more time to see if the solid job gains reported in the past three months continue.

"This is a strong signal that the Fed is not going to reduce its support for the economy any time soon," said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University.

Even with some Republican resistance, Yellen's backing by the committee and confirmation by the full Senate is viewed as all but assured.

 

 

Tags: yellen, economy, purchases, support, committee,


Other stories from today:

Obama to allow sale of canceled plans
Whitey Bulger gets life for racketeering, killings
Yellen stands by Fed's low interest rate policies
 

 
Print this Page Print this Page  |  Bookmark and Share
<< Back
 
  


 
 
 
Daily Journal Quick Poll
 
Do you support a land swap between the city of San Carlos and the elementary school district so the Charter Learning Center could be built on North Crestview?

Yes
No
Not sure

 

 
Tabbed Structure - Regular
 
 
 
 
 
Light showers, possible hail arriving tonight
Bay Area residents should expect rainy weather to arrive tonight and continue through the weekend, b..
Israel halts peace talks with Palestinians
JERUSALEM — Israel broke off Mideast peace talks and brought the U.S.-brokered process to the brin..
Paul McCartney to close Candlestick Park with farewell concert in August
Music legend Paul McCartney will perform the final concert at San Francisco's soon-to-be-demolished ..
FDA proposes first regulations for e-cigarettes
WASHINGTON — The federal government wants to ban sales of electronic cigarettes to minors and requ..
Man, 84, arrested for shooting at Daly City medical facility
Police in Daly City have arrested an 84-year-old man in connection with a shooting at a medical cent..
More >>  
 
 
  
 
  
 
©2014 San Mateo Daily Journal
Redwood Shores newspaper