Yellen Explains: Fed’s Tool Kit Is 'Limited'

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Feb. 11 (Bloomberg) –- Bloomberg’s Mike McKee and Peter Cook report on Janet Yellen’s testimony before Congress on the labor market saying the U.S. still has a long way to go. They speak to Mark Crumpton on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

Testimony, insisting the fed is committed to bringing down the unemployment rate even though the jobless rate has come down dramatically.

Michael is in the newsroom to explain what she means.

This was really a presentation aimed at people on wall street who are wondering what the fed will do about the employment mandate.

The .5% is the threshold for top -- talking about interest rates.

We are already at 6.6%, almost two years ahead of what we thought might get their -- their --there.

Resume9pcorg -- too many people are out of work.

People can only find part-time work.

It is way above where it was before the recession.

She also looked at the so-called real unemployment rate a lot of people talk about, the employment rate, people marginally attached to the labor force, those who like jobs but do not feel there is any point in looking right now.

They remain very elevated.

The fed remains committed to bring those numbers down to get more people working because when you do that, the economy expands.

Investors apparently liked with dr.

Yellen had to say early afternoon trading.

The dow industrial is up by as much as 190 points.

Did she give investors what they wanted to hear today?

Basically, she said at this point, tapering will continue in the fed's easy money policy will continue.

They get the best of both worlds, predictability for the markets.

A 10 billion cut, probably in each successive fed meeting.

The steady pace would continue.

They will not raise interest rates for quite some time.

Rates will stay low and that will help push down on rates and keep our only easier for people and companies.

We tried to do what we can and avoid the politics of meetings like this.

It was evident when ben bernanke was chair, when allen was chair.

Talk to us about the politics of today's testimony on capitol hill.

What did the divide look like?

We did get a lot of politics out here.

A lot of publicans and -- republicans -- when it comes to reducing the deficit, long-term debt, you had democrats trying to see if janet yellen would echo their concerns about income need quality and budget issues as well, perhaps the need to spend a little bit more now in terms of fiscal policy just to jolt the u.s. economy more.

She dodged most of them and did not answer questions about fannie mae and freddie mac and their futures going forward.

Consistent with bernanke, she is trying not to get into politics.

She was dragged in in a couple of cases in any event.

The first of many to come.

Peter cook live from the hill and michael mckean joining us

This text has been automatically generated. It may not be 100% accurate.

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