Yellen takes questions from the House
- We've very aware of dangers of undershooting inflation target
- There appear to be temporary factors at work in inflation (again cites prescriptions and cell phone plans)
- Prudent course is to make 'some adjustments' in rates
- Changing 2% inflation target "not a subject of discussion"
- Yellen said she's not sure if the Fed can buy student debt
- Yellen said Fed has never discussed buying student or municipal debt
- Fed intends to return to primarily Treasury portfolio
The line on 'some adjustments' line suggests Yellen isn't eager to hike rates to 3.00% at any point.
- Fed balance sheet plan aimed at avoiding market disruption
- Aging US labor force weighing on the participation rate
