Janet Yellen: Federal Reserve Will Be ‘Patient’ in Raising Interest Rates

The US Federal Reserve(WASHINGTON) — Testifying before the Senate Banking Committee on Tuesday, Federal Reserve Chair Janet Yellen reiterated that the Fed will be “patient” in deciding when to raise interest rates, saying “important progress” has been made in the economy but more progress is still needed.

“Too many Americans remain unemployed or underemployed, wage growth is still sluggish, and inflation remains well below our longer-run objective,” she said.

Yellen said that interest rate hikes would be considered on a “meeting-by-meeting basis,” but also said the Federal Reserve will be mindful not to raise rates too soon.

“If the fed were to raise rates too soon…we would risk undermining a recovery that is really just taking hold,” Yellen said.

On the Audit the Fed bill that Sen. Rand Paul, R-Ky., has introduced, Yellen said she strongly opposes the measure, saying it would “politicize monetary policy.”

“I want to be completely clear that I strongly oppose Audit the Fed. I believe the transparency and providing Congress and the public with adequate information to be able to understand our operations, our financial condition, the conduct of our meeting the responsibilities that Congress has assigned to us is essential,” Yellen said. “But Audit the Fed is a bill that would politicize monetary policy, would bring short term political pressures to bear on the Fed in terms of openness about our financial accounts. We are extensively audited.”

Yellen is scheduled to testify Wednesday before the House Committee on Financial Services.

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