New Fed chair Yellen says labour market recovery is “far from complete”
It's Janet Yellen's first big test.
The new Fed chair's written testimony was widely expected to show that she'd be leading the central bank in a more dovish direction.
Yellen has said that the FOMC will continue to taper QE in measured steps, buit that there is no preset course – it's contingent on jobs, inflation, and costs.
She sees the labour market recovery as being "far from complete".
The unemployment rate is still well above levels that Federal Open Market Committee (FOMC) participants estimate is consistent with maximum sustainable employment. Those out of a job for more than six months continue to make up an unusually large fraction of the unemployed, and the number of people who are working part time but would prefer a full-time job remains very high.
Yellen said that these observations "underscore the importance of considering more than the unemployment rate".
Investors have been watching the release for direction on the future path of Federal Reserve policy. But Yellen says that she expects to see "a great deal of continuity".
Now we wait for the testimony at 3.00pm.