Bloomberg.com apparently has an advanced copy of Yellen’s prepared statement for her confirmation hearing in the Senate tomorrow. It isn’t exactly what I would like to hear, but it’s much better, astoundingly better, than the very public anxiety attacks in relation to some unnamed and unjustified fear most other Fed officials have been having since 2007.
Here’s what Bloomberg has to say with some quotes:
Janet Yellen, nominated to be the next chairman of the Federal Reserve, said the economy and labor market are performing “far short of their potential” and must improve before the Fed can begin reducing monetary stimulus.
“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases,” Yellen, the Fed’s vice chairman, said in testimony prepared for her nomination hearing tomorrow before the Senate Banking Committee. “I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”
And this part is really good:
“While we have made progress, we have farther to go,” she said Oct. 9. “The mandate of the Federal Reserve is to serve all the American people, and too many Americans still can’t find a job and worry how they will pay their bills and provide for their families.”
I agree. I am starting think that I might just end up pleasantly surprised by the future Yellen Fed. She is, at least for now, setting some great expectations. But I remain cautiously optimistic because some things are far easier said than done.