WASHINGTON (TheStreet) -- Federal Reserve Chairman Janet Yellen on Tuesday addressed the Senate Banking Committee, giving few clues as to when the central bank would adjust interest rates and deflecting politicians’ criticisms.
However, the relatively new Fed head delivered her most confident appearance yet and offered us a few main highlights to take away before the big policy-making meeting scheduled in two weeks.
No surprises from the standpoint of monetary policy. Yellen reiterated what we’ve known for months -- that the Fed won’t begin to raise interest rates for a considerable time after the central bank ends its economic stimulus program.
This is the most crucial next step arguably every market in the world is waiting to learn more about. While senators repeatedly mentioned during their questions that the Fed would end its quantitative easing by October -- an assumption gleaned from the latest Federal Open Market Committee Minutes that said many members were considering to close out monetary stimulus by then should the scaling back of asset purchases stay on pace -- Yellen reminded politicians that such action depended on economic data.
Goldman Sachs Earnings Reflect Banking Sector's Troubles
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