Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


                          Yellen: Keep Fed Independent

   by Jim Randle

   The head of the U.S. central bank says increased congressional
   supervision of the Federal Reserve could reduce its independence and
   hurt the economy.

   Fed Chair Janet Yellen spoke Wednesday at a contentious hearing of the
   House Financial Services Committee. She said efforts to "further
   increase transparency" could "undermine the Federal Reserve's ability
   to make policy in the long-run best interest of American families and
   businesses."

   Committee Chairman Jeb Hensarling and other Republicans are
   investigating a leak of confidential information from the Fed about
   bond-buying plans. Fed officials say they have not provided some of the
   information requested so as to not interfere with a Justice Department
   investigation of the matter.
   Fed oversight
   Hensarling and other Republicans also are working to increase oversight
   of the bank's decision-making process.

   The central bank's supporters say it needs independence from political
   pressures so it can make decisions, such as raising interest rates that
   are good for long-term economic health, but may be politically
   unpopular.

   Yellen said Fed officials expect to raise slightly interest rates,
   sometime later this year if the job market continues improving and
   inflation rises closer to the 2 percent level some experts think is
   good for growth.
   The bank cut interest rates to record low levels during the financial
   crisis in a bid to boost economic growth. Economists say at some point
   the recovering economy no longer will need such a crutch, warning that
   continuing these policies for too long could spark damaging inflation.
   Improvements, obstacles

   Yellen said the economy has created 12 million jobs since the recession
   and fewer people are now suffering long-term unemployment or stuck with
   part-time work when they want full time employment.

   The Fed chair said "headwinds" slowing U.S. economic growth -- such as
   the rising value of the dollar that makes U.S.-made exports more
   expensive -- eventually will diminish.

   She also said the improving economic outlook, though, could be hurt by
   the "difficult" situation in Greece, and by China's "high debt, weak
   property markets and volatile financial conditions."




     __________________________________________________________________

   [1]http://www.voanews.com/content/fed-chair-yellen-says-fed-must-remain
   -independent/2863056.html

References

   1. http://www.voanews.com/content/fed-chair-yellen-says-fed-must-remain-independent/2863056.html