More from Yellen press conference

|By:, SA News Editor

The decline in headline unemployment to 6.3% overstates the improvement in the labor market, says Yellen, explaining why the Fed plans on holding rates low even after the rate falls to 5.5%.

At least part of the decline in the rate represents what Yellen calls "shadow unemployment" - discouraged workers who have exited the labor force, but would return if prospects improved.

Markets are starting to take some direction, with the S&P 500 (SPY) now ahead 0.6% and the 10-year Treasury yield sinking four basis points to 2.61%.

Asked an interesting question about whether Fed policy is at odds with itself - with one hand, the Fed wants credit to flow to help boost the economy, but with the other hand is stifling credit with new regulations - Yellen says the boosted oversight is needed to prevent another financial crisis, and from her seat credit is broadly available.

Treasury ETFs: TBT, TLT, TMV, SHY, IEF, TBF, PST, EDV, TMF, TTT, ZROZ, TLH, SBND, IEI, TYO, DLBS, DTYS, VGLT, BIL, UST, UBT, TBX, SHV, VGIT, TLO, VGSH, SCHO, GSY, TENZ, ITE, DTYL, LBND, SCHR, TYD, SST, TYBS, DTUS, DTUL, TUZ, TBZ, DLBL, FIVZ, DFVL, DFVS, TYNS

Previous FOMC/Yellen coverage