US: Federal Reserve Chair Janet Yellen Speech

Thu Jul 13 08:30:00 CDT 2017

Federal Reserve Chair Janet Yellen to testify before the Senate Banking Committee in Washington.

Janet Yellen conceded that wage pressures are weak but warned it's premature to conclude that inflation trends are falling back below 2 percent. In other remarks, the Fed's chair, like she did in her first day of testimony, declined to say how low the Fed's balance sheet will be reduced to, saying only that she expects the Fed's reserves, currently at $4.5 trillion, to be reduced substantially. She also repeated that it's the FOMC's goal to hold only Treasuries on the Fed's balance sheet (the Fed currently owns $1.8 trillion in mortgage-backed securities). Markets showed no reaction to today's testimony.