Yellen Sees Few Risks to Divert Fed From QE Tapering Strategy

Janet Yellen, taking charge as Federal Reserve chairman, let lawmakers know she’s united with her policy committee and sees few risks that could derail a plan to steadily reduce the Fed’s bond purchases.

Yellen, testifying to the House Financial Services Committee yesterday, said she was surprised by reports showing weaker job growth yet wants to see more data before assessing the health of the labor market. Global financial-market turbulence doesn’t pose a major risk to the U.S. economy, she said, and inflation is likely to move up toward the Fed’s 2 percent target -- even after missing it for almost two years.