The nominee to chair the Federal Reserve will be questioned by the Senate Banking Committee on Thursday at 10 a.m. Eastern, at a time when markets have changed their tune on when the central bank may start reducing its bond purchases.
Yellen has never been in a hurry to taper, but the jobs data released Friday offer some food for thought.
Over the last year, jobs growth has averaged 194,000 per month — a sign of an economy in which the labor market is making genuine if not rapid progress. To be sure, the 7.3% unemployment rate is still high, but is it high enough to warrant the extra accommodation provided by the central bank’s $85 billion-per-month in asset purchases?
That’s what the market wants to know from her confirmation hearing.