Yellen Says Economy Still Needs Boost

Nominee to chair the Fed suggests low interest rates will continue

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Janet Yellen believes the unemployment rate is still to high and the economy too weak to be taken off life support.

In prepared remarks for her confirmation hearing tomorrow, Obama’s nominee to Chair the Federal Reserve signaled that inflation remains too low and there is room yet for the Fed to offer support for the recovery.

“I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy,” Yellen said, according to remarks released to the Associated Press. Her remarks suggest she won’t deviate sharply from the extraordinary pro-growth policies of her predecessor, Ben Bernanke, including the Fed’s massive bond purchasing program designed to keep borrowing rates low.

Yellen is expected to win approval in the Senate Banking Committee tomorrow as well as confirmation in the full Senate to succeed Bernanke, whose term ends January 31.

[AP]

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