July 17, 2014
WASHINGTON (Reuters) - defended the president of the Federal Reserve, Janet Yellen, for the independence of the U.S. central bank in a congressional hearing yesterday which she faced tough questions from Republican lawmakers want to reduce the powers of the Fed.
's comments came Yellin about the economy and the policy of the Federal Reserve similar to what she said Oiilathae the last before the Banking Committee of the Senate, where stuck to its view that there is still a need to continue the policy of monetary easing even as the economy recovers.
said Yellen yesterday before the Committee on Financial Services of the House of Representatives she sees growing enough to support gains in the labor market, and that the rates the growth of credit and borrowing to finance the purchase of assets seems reasonable.
dealt with unrelenting also concerns about the control of the central bank to financial institutions and used to repurchase agreements.
drew members of the Republicans to the unrelenting questions more severe than those encountered in the Senate critics of the U.S. central claiming it does not work transparently enough.
He asked the Chairman of the Committee pocket Hensarlng, a member of the House of Representatives from Texas, unrelenting whether discussions weekly with the Secretary of the Treasury should be declared to the public.
said Yellin «I'm not ready to report on a weekly basis for informal consultations», adding that it will be announced any agreements may result from these talks.
asked Hensarlng president of the Federal Reserve about a bill introduced this month, is supported by Republicans, and implies that the Board shall further analysis on the basis of cost and benefit, as well as transparency about the stress tests for banks and international regulations, and that monetary policy is based on specific rules.
said Hensarlng «evidence suggests unequivocal that monetary policy be the best at maintaining price stability and the highest rates of employment when pursuing a monetary policy rules and clear unpredictable.»
said Yellen said the central bank commits a «grave mistake» if committed approach to monetary policy is on fixed rules, pointing out that such adherence to those rules after the 2007-2009 financial crisis will make the economic situation even worse.
eating Carret Scott, a member of the House Republican from New Jersey, the issue of the ability of the central bank to intervene to rescue troubled financial institutions, expressing concern that more companies become eligible for the protection of the taxpayer when the crisis.
received relents, saying that such action will not be taken by the central except in cases of extreme necessity.
Regarding the agreements to repurchase, used by the central to absorb excess liquidity at banks, showed a lawmakers worried that this represents a significant expansion of the authority of the Federal Reserve.
received relents, saying that the Fed discussed this possibility, which is familiar with it, and that he is ready to face any potential risks threatening financial stability.