Federal Reserve chair Janet Yellen is back in Congress as part of her semi-annual testimony.
On Thursday morning, Yellen is speaking before the Senate Banking, Housing, and Urban Affairs Committee on monetary policy.
The highlight of Yellen’s testimony Thursday will be the Q&A session, which will happen after she repeats her prepared testimony from yesterday.
Notably, Sen. Elizabeth Warren (D-Mass.) is likely to press Yellen yet again on the extent to which the Fed is prepared to police Wall Street’s biggest banks. Yellen got similar questions yesterday, and responded that while it’s the Department of Justice’s job to prosecute, the Fed ensures that offenders are barred from banking.
Yellen’s testimony comes at a tumultuous time for global markets, as US stocks continue to sell-off and the Nasdaq hovers right above bear-market territory.
In her remarks to the financial services committee on Tuesday, Yellen gave an assessment of the economy that was little changed from what we saw in the Fed’s December statement: Labour-market gains continue to be strong, and transitory factors are holding down inflation.
However, she noted that financial conditions have become less supportive of growth, as stocks have sold off, the dollar strengthened, and investment grade bond yields spiked. She noted that the Fed could lower the rate-hike path if economic conditions warrant.
Keep it here, as we’ll have live coverage of the Q&A session.
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