Fed Chair Yellen fends off Republicans criticism of Fed’s efforts to boost economy
Federal Reserve Chairwoman Janet Yellen on Wednesday fended off Republican criticism of the central bank’s efforts to boost the economy, and repeated her warnings that proposals to rein in the Fed could compromise its independence.
Ms. Yellen, testifying before the House Financial Services Committee, touted the economy’s improvement since the financial crisis, including a substantially lower jobless rate, but acknowledged that growth overall had been “quite disappointing.”
Republican lawmakers peppered Ms. Yellen with questions about the economy’s lackluster growth since the recession, and criticized the central bank for unconventional policies — such as lowering short-term interest rates to near zero and undertaking several rounds of asset purchases — which they said hadn’t done much to spur the economy.
“After eight years, there is zero evidence that zero interest rates and a bloated Federal Reserve balance sheet leads to a healthy economy,” committee Chairman Jeb Hensarling (R., Texas) said.
