Yellen answers questions

  • I will not say that the committee fully understands the shortfall
  • If inflation shortfall persists, it will be necessary to change monetary policy to address it
  • Tightness in labor market will lag in pushing up wages and prices
  • We are certainly taking into account movements in asset prices in setting policy
  • As long as we believe we can use Fed funds rate as a tool, that's how we plan to calibrate policy, not with balance sheet
  • We would only consider resuming reinvestment if there was a material deterioration in the outlook