Federal, People, Regulation

Yellen testifies at confirmation hearing before Senate Banking Committee

Janet Yellen

Janet Yellen

Federal Reserve nominee Janet Yellen told the Senate Banking Committee on Thursday that support of the central bank’s current monetary policy “is the surest path to returning to a more normal” monetary policy.

Yellen, who was nominated by President Obama to succeed Ben Bernanke as chairman of the Fed, said she helped lead the effort to adopt the Federal Open Market Committee’s stated long-term monetary objectives, including an inflation goal of two percent.

“I believe this statement has sent a clear and powerful message about the FOMC’s commitment to its goals and has helped anchor the public’s expectations that inflation will remain low and stable in the future,” Yellen said in prepared remarks. “In this and many other ways, the Federal Reserve has become a more open and transparent institution. I have strongly supported this commitment to openness and transparency, and will continue to do so if I am confirmed and serve as Chair.”

Additionally, Yellen said that while regulators have addressed many of the problems that contributed to the 2008 financial crisis, “important work lies ahead.”

“I am committed to using the Fed’s supervisory and regulatory role to reduce the threat of another financial crisis,” Yellen said. “In writing new rules, however, the Fed should continue to limit the regulatory burden for community banks and smaller institutions, taking into account their distinct role and contributions. Overall, the Federal Reserve has sharpened its focus on financial stability and is taking that goal into consideration when carrying out its responsibilities for monetary policy. I support these developments and pledge, if confirmed, to continue them.”

Yellen joined the Federal Reserve as the vice chairman in 2010, before which time she served as the president and CEO of the San Francisco Federal Reserve Bank.

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