Yellen Downplays Financial Risks in Strong U.S. Economy

Janet Yellen testifies before the Joint Economic Committee, highlighting the strengthening economy and labor market. She anticipates gradual increases in the federal funds rate, suggesting a December move. Yellen addresses inflation, expecting it to stabilize around 2% but acknowledges potential persistent low inflation. She hands over the issue to Jay Powell if needed. Yellen also comments on market valuations, noting they are high but not a concern for financial stability, as the banking system is well-capitalized.

What did Janet Yellen suggest about the federal funds rate in her testimony?

• It will remain unchanged.

• It will decrease gradually.

• It will increase gradually.

• It will be abolished.

What is Janet Yellen's stance on the current low inflation?

• It is a permanent change.

• It is temporary and likely to pass.

• It is not a concern for the Fed.

• It is beneficial for the economy.

Who is expected to handle the inflation issue if it turns out to be persistent?

• Janet Yellen

• The President

• Jay Powell

• The Joint Economic Committee

What does Yellen say about asset valuations in the financial markets?

• They are low by historical standards.

• They are high by historical standards.

• They are irrelevant to the economy.

• They are decreasing rapidly.

What is Yellen's view on the stability of the financial sector?

• It is moderately vulnerable.

• It is stable and well-capitalized.

• It is on the verge of collapse.

• It is highly vulnerable.