Yellen Says Fed Still 'patient' on Raising Rates News Video

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Federal Reserve Chair Janet Yellen says the Federal Reserve remains patient in deciding when to raise interest rates because too many Americans remain unemployed, wage growth remains sluggish and inflation is running below the Fed's target. (Feb. 24).

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    If confirmed by the Senate, Yellen would take the helm of the Fed in a moment of transition, as the FOMC prepares to taper its quantitative easing program, a prospect which the markets see as the beginning of the end of easy money. Yellen has worked side by side with Chairman Bernanke as vice chairwoman since 2010, and has been a proponent of the Fed’s loose monetary stance. Even if the Fed reduces its pace of monthly asset purchases, it would still be adding to its balance sheet.
    Since the Federal Funds rate hit the zero-bound in the wake of the 2008 financial crisis, Bernanke has engaged in several rounds of quantitative easing, buying Treasuries and mortgage-backed securities with the aim of increasing the money supply and encouraging bank lending. The Fed’s balance sheet has ballooned past $3 trillion, leaving his successor with the difficult task of managing the exit strategy.

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    Beauty Tips video | 571 views

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    Beauty Tips video | 486 views