WASHINGTON | The Latest on Federal Reserve Chair Janet Yellen’s testimony to the Senate Banking Committee (all times local):
Senate Banking Committee members Sen. Ben Sasse, R-Neb., left, and Sen. Tim Scott, R-S.C., talk on Capitol Hill in Washington, Thursday, July 13, 2017, prior to the start of the committee's hearing with Federal Reserve Chair Janet Yellen. (AP Photo/Pablo Martinez Monsivais)
Federal Reserve Chair Janet Yellen testifies on Capitol Hill in Washington, Thursday, July 13, 2017, before the Senate Banking Committee. (AP Photo/Pablo Martinez Monsivais)
Federal Reserve Chair Janet Yellen is testifying for a second day before Congress. She is expanding on her views on inflation, emphasizing that the dual risks to inflation: prices rising too slowly and prices accelerating too quickly.
Her comments appeared to be an effort to modify the impact of her comments before a House committee on Wednesday. The House remarks were seen as signaling that the Fed might slow the pace of rate hikes if inflation does keep falling below the Fed’s 2 percent target.
In testimony Thursday before the Senate Banking Committee, Yellen stressed that she saw the “risk on inflation as being two-sided.”
Yellen said it was premature to conclude that the underlying inflation trend would continue to fall below the Fed’s 2 percent target, even though price gains have slowed in recent months.