Interest Rate Watch

February 28, 2014

Federal Reserve Chair Janet Yellen, in the second day of her semi-annual testimony on the economy and monetary policy, repeated the Fed’s pledge to keep the benchmark interest rate low as long as unemployment stays above 6.5% and the outlook for inflation does not exceed 2.5%. It also appears that Yellen plans to continue its tapering policy. According to Craig Torres of Bloomberg, “Federal Reserve Chair Janet Yellen repeated that the Central Bank is likely to maintain its strategy of gradually trimming asset purchases”.