Janet Yellen's First Meeting With Congress As Our New Chairperson Of The Federal Reserve

Tim Duy reports and analyzes Janet Yellen's testimony.  She was part of the team that developed the Fed's strategy under Ben Bernanke.  She supports the twin mandate of the Fed to manage inflation and the unemployment rate.  There are no current indications of an inflation threat and the details of the employment picture suggest that the Fed is still concerned about the labor market despite a declining unemployment rate.  Yellen indicated that the Fed will continue with its plan to reduce its purchases of financial assets, and more importantly, she suggested that the Fed will continue to keep short term interest rates low until it is more comfortable with the labor market.