Janet Yellen: US Economy Still Needs Fed's Help
Fed nominee is testifying before Senate Banking Committee
By Newser Editors and Wire Services
Posted Nov 14, 2013 9:20 AM CST
FILE - In this Monday, June 3, 2013, file photo, Janet Yellen, vice chair of the Board of Governors of the Federal Reserve System, places her name plate at her seat at the International Monetary Conference...   (Eugene Hoshiko)

(Newser) – Janet Yellen said today that the US economy has regained ground lost to the Great Recession but still needs the Federal Reserve's support because unemployment remains too high at 7.3%. Yellen is testifying this morning to the Senate Banking Committee, which is considering her nomination to be the next chairman of the Federal Reserve. Her remarks suggest 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. She noted that the economy is still performing far below its potential. And she pointed out that inflation is running below the Fed's 2% 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. Even with some Republican resistance, Yellen's backing by the committee and confirmation by the full Senate is viewed as all but assured. But approval won't come before critics air their grievances about the Fed's response to the financial crisis and the Great Recession.

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Showing 3 of 11 comments
iq145
Nov 16, 2013 12:41 AM CST
What the hell is Janet Yellin' about now?
Ezekiel 25:17
Nov 15, 2013 11:54 AM CST
She is still in the litmus test for FOREX traders. I haven't been able to monetize her as much as I like. I need Obama to open his keg hole more often so I can continue to load my FOREX accounts. He opens his pie hole and all of the sudden all my bets against the USD skyrocket into capital gains territory. Entitlement recipients should bow down to my shoes and kiss my feet as I'm going to pay a huge capital gains tax next year all thanks to their hero Slumbama. I am only about a year of negativity of the USD's world value to be able to say goodbye to all your rubes here in the states and join my enclave in Europe. I could leave now except that I haven't shut down my endeavors just yet. Meanwhile, I'll be riding those dumbama drop in pips and hoping he does more speeches. I think I'll send him a pie in thanks of the profits of his stupidity.
Jedrek
Nov 15, 2013 6:52 AM CST
Maybe she is right that economy is still bad. Just when I thought all these people jumping of the planes and choppers are doing it from joy, that we are doing so great.