AI
Wednesday, December 17, 2014 6:15:07 PM
The following are highlights of Federal Reserve Chair Janet Yellen's remarks at a press conference following the conclusion of the U.S. central bank's two-day policy meeting on Wednesday.
ON CONGRESSIONAL THREAT TO FED'S INDEPENDENCE
The ability of the central bank to make the decisions about monetary policy that it regards as in the best longer-run interest of the economy, free of short-run political interference, is very important to the effective conduct of monetary policy. I think history shows that not only in the United States but around the world that central bank independence promotes better economic performance. I do think central bank independence is important.
ON RUSSIA
Well we certainly did review global economic developments including developments in the Russian economy. Clearly Russia has been hit very hard by the decline in oil prices and the rouble has depreciated enormously in value and this is posing a series of very difficult economic conditions in the Russian economy. Of course we discussed what the potential spillovers are to the United States, which could occur both through trade and financial linkages. But these linkages are actually relatively small.... in the case of the United States I see the spillover as pretty small but we're obviously watching that closely.
ON RATE RISES NOT NECESSARILY "MEASURED"
There certainly has been no decision on the part of the committee to move at a measured pace or to use language like that....We'd probably not like to repeat a sequence in which there was a measured pace and 25-basis point moves at every meeting....
We expect to be able to normalize policy but until those conditions have lifted that have held back economic activity monetary policy will need to stay accommodative. So in that sense perhaps that's equivalent to saying that the path of normalization is anticipated to be relatively gradual but again the path of rates will depend on how economic conditions actually evolve. And that's nothing more than an expectation on the part of the committee.
http://www.reuters.com/article/2014/12/17/us-usa-fed-highlights-idUSKBN0JV2O320141217
as-of-12-17-2014
ON CONGRESSIONAL THREAT TO FED'S INDEPENDENCE
The ability of the central bank to make the decisions about monetary policy that it regards as in the best longer-run interest of the economy, free of short-run political interference, is very important to the effective conduct of monetary policy. I think history shows that not only in the United States but around the world that central bank independence promotes better economic performance. I do think central bank independence is important.
ON RUSSIA
Well we certainly did review global economic developments including developments in the Russian economy. Clearly Russia has been hit very hard by the decline in oil prices and the rouble has depreciated enormously in value and this is posing a series of very difficult economic conditions in the Russian economy. Of course we discussed what the potential spillovers are to the United States, which could occur both through trade and financial linkages. But these linkages are actually relatively small.... in the case of the United States I see the spillover as pretty small but we're obviously watching that closely.
ON RATE RISES NOT NECESSARILY "MEASURED"
There certainly has been no decision on the part of the committee to move at a measured pace or to use language like that....We'd probably not like to repeat a sequence in which there was a measured pace and 25-basis point moves at every meeting....
We expect to be able to normalize policy but until those conditions have lifted that have held back economic activity monetary policy will need to stay accommodative. So in that sense perhaps that's equivalent to saying that the path of normalization is anticipated to be relatively gradual but again the path of rates will depend on how economic conditions actually evolve. And that's nothing more than an expectation on the part of the committee.
http://www.reuters.com/article/2014/12/17/us-usa-fed-highlights-idUSKBN0JV2O320141217
as-of-12-17-2014
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