US Fed Yellen Appearance Puts Taper on Hold

Janet Yellen, the woman the White House wants to run the Federal Reserve, has defended its stimulus efforts and vowed to continue them if confirmed.

In her first appearance in front of Congress, she said the Fed’s $85bn (£53bn) bond-buying programme was a “meaningful contribution to economic growth”.

Ms Yellen has been chosen to lead the US central bank once Ben Bernanke’s term ends in January.

To be confirmed, she needs 60 votes.

During the Senate Banking Committee hearing, which is often a chance for senators to tout their own individual interests, Ms Yellen was asked about everything from gold prices to “too big to fail” banks, as well as whether or not the stock market was in a bubble.

Appearing calm despite the range of questioning, Ms Yellen answered with ease – she follows gold prices, will assess current banking reforms once they’re implemented, and doesn’t think markets are in bubble territory.

Through it all, she remained firm in her commitment to continue the current Fed’s extraordinary stimulus measures.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza