Fed Chair Yellen Points to Uncertainty of Inflation

Janet Yellen's testimony highlights a moderate economic growth with inflation uncertainties. She discusses gradual interest rate increases and balance sheet adjustments. The Fed's aversion to strict monetary policy rules is noted, with no significant changes in bank regulation. Market reactions vary, with some analysts questioning the impact of the balance sheet on policy.

What is the current state of the economy according to Janet Yellen?

• The economy is growing at a moderate pace.

• The economy is booming.

• The economy is shrinking rapidly.

• The economy is stagnant.

What is the main uncertainty for the Federal Reserve as mentioned by Yellen?

• The unemployment rate.

• The stock market performance.

• The rise and extent of inflation.

• The housing market trends.

What is the Federal Reserve's approach to interest rates according to Yellen?

• No changes to the current rates.

• Immediate and significant rate hikes.

• Gradual rate increases.

• Rate cuts to stimulate the economy.

What does Yellen say about the Federal Reserve's balance sheet?

• It will remain the same size.

• It will be eliminated entirely.

• It will be reduced but not to a specific size.

• It will be increased significantly.

What is Yellen's stance on monetary policy rules?

• The Fed strictly follows one rule.

• The Fed consults various rules but no single rule is definitive.

• The Fed ignores all monetary policy rules.

• The Fed has created a new rule to follow.