FIRST AIRED: February 14, 2017

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Transcript

00:00:01
>> She's used to sparring with Republican law makers who want to diminish the Federal Reserve's power and who want to roll back regulations put in place after the financial crisis.>> It is time to reassess what is working and and what is not.>> Now the GOP is planning to push through Trump tax cuts and spending plans.
00:00:18
>> As you see those possibilities occurring, is that affecting how you look at monetary policy?>> Prompting fed chair Janet Yellen Tuesday to warn Senators of unintended consequences in her first Congressional testimony since the Republicans swept the White House and both houses of Congress.>> We don't know what fiscal plans Congress and the administration will decide on.
00:00:42
We're not basing our judgements about current interest rates on speculation about that. Some of the policies that are being discussed might well raise deficits, and in that context then they also have impacts on economic growth.>> Yeah.>> And the economy's growth potential.>> Markets are expecting at least three rate hikes this year as Yellen and her policymakers try to move further away from the unprecedented near-zero rates put in place to stimulate the economy after the financial crisis.
00:01:15
Yellen hinting the next rate hike could come sooner than expected, even as early as March.>> Waiting too long to remove accommodation would be unwise. Potentially requiring the FOMC to eventually raise rates rapidly which could risk disrupting financial markets and pushing the economy into recession.>> That comment sparked a rally on Wall Street, especially in bank stocks, sending the market to a record high.
00:01:44
Yellen goes back to the Hill Wednesday for round two, this time before the House.