Yellen perplexed by weather's effect on economy

Her February 12 appearance before the Senate delayed by the weather, Janet Yellen takes the stage today. Her prepared remarks deviate a bit from those before the House on February 11 as she says it's too soon to know the effect of the harsh winter on the recent batch of weak economic statistics.

“In the weeks and months ahead, my colleagues and I will be attentive to signals that indicate whether the recovery is progressing in line with our earlier expectations,” she says, sounding like another taper is baked into the March meeting. It would take a "significant" change in the outlook for the Fed to alter the taper, she says, again bringing up the weather as making it difficult to get a handle on things.

As for the 6.5% unemployment rate threshold for hiking interest rates? It's gone. "The unemployment rate is not a sufficient statistic to measure the health of the labor market ... As we go to a fuller consideration of how the labor market is performing, we need to take all of those things (such as long-term unemployed and labor force participation) into account."

The Q&A continues. Watch live here.

Treasurys are snoozing through the testimony, the 10-year yield still down a basis point at 2.65%. TLT +0.4%.


From other sites
Comments (15)
  • Philip Marlowe
    , contributor
    Comments (1625) | Send Message
    Good to hear her comments re unemployment.
    27 Feb 2014, 12:11 PM Reply Like
  • Bouchart
    , contributor
    Comments (1174) | Send Message
    Yes, the harsh winter was the cause of our economic woes. We've never had a winter before so we didn't know what to expect.
    27 Feb 2014, 12:57 PM Reply Like
  • BornIn87
    , contributor
    Comments (111) | Send Message
    I like her style. Use whatever excuse necessary to continue the taper, we need to get off the teet.
    27 Feb 2014, 01:13 PM Reply Like
  • Brian58
    , contributor
    Comments (330) | Send Message
    Doesn't matter what is reported, "Stocks must go up"
    27 Feb 2014, 01:25 PM Reply Like
  • caupachow
    , contributor
    Comments (527) | Send Message
    she is joke, the fed is a joke and in the end no one will be laughing. end is still a ways off though so keep buying the dips.
    27 Feb 2014, 01:49 PM Reply Like
  • ilikemoney
    , contributor
    Comments (17) | Send Message
    The spice [QE] must flow.
    27 Feb 2014, 03:21 PM Reply Like
  • th3decider
    , contributor
    Comments (481) | Send Message
    Kudos for the Dune reference.
    27 Feb 2014, 04:25 PM Reply Like
  • minecanary
    , contributor
    Comments (1413) | Send Message
    Tiny Timmy and Banjo Ben better get their books out before the titles get changed to How I Printed a Disaster
    27 Feb 2014, 04:19 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1828) | Send Message
    Educated fools addicted to publicity, puffed up with self importance talking about issues that are obvious to everyone except the fools themselves, eyeing their future rewards from Wall Street.
    27 Feb 2014, 06:33 PM Reply Like
  • SharkDude
    , contributor
    Comments (784) | Send Message
    Good lord. Can she bake some cornbread? She seem confused my many questions. Insists on referring to tools without specifying. Cooking tools madam? Sex tools. What tools is she talking about? Zero confidence.
    27 Feb 2014, 10:56 PM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
    What is this "winter"??? Is it a new phenomenon?
    28 Feb 2014, 12:09 AM Reply Like
    , contributor
    Comments (226) | Send Message
    I got to laugh at the post here that sounds like post in the Daily Times. The sky is falling. LOL!
    28 Feb 2014, 12:27 AM Reply Like
  • june1234
    , contributor
    Comments (4504) | Send Message
 She should subscribe to Time. This study shows temps were normal on east coast while unseasonably warm out west this winter
    28 Feb 2014, 02:17 AM Reply Like
  • GoGowadof100s
    , contributor
    Comments (128) | Send Message
    She seems so confused?!?!? After the fall comes the winter, and btw there no inflation. thought i'd throw that in there. o yea and bitcoin
    28 Feb 2014, 05:31 AM Reply Like
  • eyescrub
    , contributor
    Comments (3) | Send Message
    gee I guess the fact that high end car sales went up during that period means that only wealthy car buyers were able to fend of the weather. GIVE ME A BREAK!
    28 Feb 2014, 09:31 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs