February 10, 2014

Yellen to testify on Fed policies today

Feb. 11, 2014 – Federal Reserve Chair Janet Yellen today is expected to discuss the Fed's policy on quantitative easing and the status of inflation and the employment market today when she delivers her first monetary policy report to the House Financial Services Committee.

NAFCU Chief Economist and Director of Research David Carrier said Yellen is expected to answer questions about the possibility of inflation stemming from quantitative easing policies, the status of the labor market and the Fed's monetary policies going forward. NAFCU economists will monitor today's hearing.

Yellen will also testify Thursday before the Senate Banking Committee.

After a two-day policy meeting in January, the Federal Open Market Committee announced the Fed will taper its asset-purchase program by another $10 billion beginning this month, to a pace of $65 billion a month, but is leaving its federal funds rate target unchanged for now. This follows the Fed's decision to begin tapering asset purchases by $10 billion in January, to a pace of $75 billion a month. Carrier is expecting the Fed to continue to scale back its asset purchase program unless the economy gets worse.

Yellen was sworn in as Fed chair on Feb. 3. NAFCU's board met with Yellen at Federal Reserve Board headquarters in December 2012 on issues important to the Fed and credit unions.