Fed to keep trimming stimulus, confirms Yellen

Feb 11, 2014, 5:33 AM EST
anet Yellen, the new Federal Reserve Board chairwoman, appears before the House Financial Services Committee to give her first testimony as Fed chair on February 11, 2014 in Washington, DC
AFP/Getty Images

Janet Yellen, fresh from taking the helm of the Federal Reserve, made it clear on Tuesday she would not make any abrupt changes to U.S. monetary policy, saying the central bank was on track to keep reducing its stimulus even though the labor market recovery was far from complete. In her first public comments since becoming Fed chief earlier this month, Yellen said the central bank must keep its eye on the "unusually high" incidence of long-term unemployment and the "exceptionally high" proportion of Americans who can find only part-time work as it plots a tricky reversal of its very accommodative policy stance. "By a number of measures our economy is not back, the labor market is not back, to normal," she told the U.S. House of Representatives' Financial Services Committee.
 
Background:
 
Yellen stays the course, says Fed to keep trimming stimulus [Reuters]
Video: Monetary Policy and the Economy, Part 1 [C-SPAN]
Fed Urges Emerging Markets to Take Heftier Policy Actions to Stem Capital Flight [WSJ]

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