Janet Yellen announced that the Federal Reserve will continue its bond-buying program. Yellen has noticed that the U.S. economy has some soft spots but also that she doesn’t want to overreact to that. Yellen told the Wall Street Journal that she will continue to proceed with the former Federal Reserve Chairman Ben Bernanke’s policies.
“I expect a great deal of continuity in the Fed’s approach to monetary policy. I served on the committee as we formulated our current policy strategy and I strongly support that strategy,” Yellen said. Since the markets were expecting a steady stance in the Fed’s bond buying program, the Dow Jones Industrial Average rose 192.88 points. Yellen is the first female elected to lead the Fed and has been described by Wall Street analysts as boring, but Yellen wasn’t looking to stir up the markets with her news. Yellen provided some details about the Fed’s view on the economy saying that two months of disappointing employment numbers will not sidetrack the Fed from reducing its bond-buying program. Right now we can expect the Fed to not make any major changes in its plan to fully stabilize the economy.
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