“We will do everything we can to support the economic recovery by guaranteeing price stability”. Janet Yellen said this during the question and answer session underway at the Senate Banking Committee, called to confirm her appointment as future governor of the Federal Reserve.
The current number two of the American central bank then explained that there are risks both in terminating the Treasury and mortgage bond purchase plan "too soon" and in maintaining it "for too long".
Yellen stressed the need "not to remove support when the economy is still fragile." The Fed, she added, "has tools at its disposal to contribute to the recovery but when the time is right there will be a reduction in stimulus measures".
