Yellen: Fed Policy Could Shift With Economic Change
Federal Reserve Board Chairwoman Janet Yellen told House lawmakers Tuesday in her prepared remarks that she expects a great deal of continuity in the Federal Open Market Committee’s approach to monetary policy.
However, Yellen conceded during the question and answer session with lawmakers that the Fed would pause its tapering of asset purchases if there was a notable change in the economic outlook, and increase asset purchases again if there were “a significant deterioration in the outlook — either for the job market or if inflation would not be moving back up over time.”
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