US: Federal Reserve Chair Janet Yellen Speech

September 28, 2016 09:00 CDT

Federal Reserve Chair Janet Yellen gives semi-annual testimony to House Financial Services Committee on the Fed's "Supervision and Regulation of the Financial System"

Regulators have to be on the watch for new risks to the financial system and be ready to adjust their approach when necessary, Janet Yellen said in prepared testimony to the House Financial Services Committee. She also cited the need to monitor the impact of post-crisis regulatory reform that includes capital surcharges and stress tests. Yellen's assessment of the nation's banking sector is positive noting that common equity capital at the eight most systemically important banks has doubled since 2008. Though her statement centered on regulatory issues, she did address economic conditions and monetary policy in questions and answers. She said job creation this year has been "well above" sustainable levels though she sees no meaningful upward pressure on prices. She does expect the unemployment rate to move lower and she said accommodation will need to be gradually removed.