April 21, 2014

New Fed Chair Discusses Challenges Ahead

  • The national debt has grown significantly in recent years due to rising annual deficits. A deficit occurs in any year the government spends more...

In her first congressional appearance as chair of the Federal Reserve, Janet Yellen this morning discussed challenges facing the central bank and noted that tightening fiscal policy had slowed economic growth last year.

President Obama nominated Yellen last October to succeed Ben Bernanke and she took over at the Fed last week. She served as the Fed’s vice chair for the past several years and is the first woman to lead the Fed.

Like Bernanke, she has encouraged elected officials to pursue more responsible fiscal policies that would support the economic recovery in the short term while laying the foundation for longer-term fiscal reforms.

Yellen, who testified today before the House Financial Services Committee on the Fed’s semi-annual monetary policy report for Congress, promised “a great deal of continuity” in Fed policy. She is scheduled to testify Thursday before the Senate Banking Committee.