re: UPDATE: Fed Chair Yellen is testifying live on CNBC now. (9:34 am, 2/11/16)

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Damn what a turnaround for the Dow in less than 2 hours

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WTI was up over a dollar and turned around. It's now down about $.40. Probably what hit the market. I'm not sure if Yellen has said anything to affect either.

Another speech by a black congressman complaining about unemployment among blacks. He wants the Fed to do something about that?!

"The Fed has consistently downplayed African American unemployment because the Fed has never had an African American president of one of its district banks."

ETA: DJ up 13 points.

The same congressman wants Yellen to "work with him" to get an AA as a president of a district bank. He keeps referring to the district banks as "regional fed banks." He doesn't even know how the Fed is structured but he wants to have a say-so over who would be a president? Very sad. He's from Georgia.

Asking her opinion about the deficits and level of the national debt.

"It's unsustainable." - Yellen

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Question: "Does the Federal Reserve have the legal authority to implement negative interest rates?"

Her answer: "Our legal advisers say it is an open question at this point."

Question: "Does the Fed need a bill to authorize negative rates?"

Answer: "We don't know at this point."



This will be interesting going forward IMO. I would say the Fed will be very hesitant to ask Congress for approval on anything. I've read that the Fed could drive lending rates below zero with RRP's without needing Congress' OK.

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I'm confused why the Fed needs specific authorization to create negative interest rates since it already has authority to set the Fed funds rate. But no one at the Fed has asked my opinion....

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LSURussian

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Nice Recap, Thanks

I missed it, though, it appears much the same blanket statements. Which is probably good.



Did she try and call the bottom of oil again?

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BREAKING: YELLEN RAISES RATES FOR WHITE OWNED BUSINESSES ONLY

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This frickin guy.

Needs to go to the mental hospital

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Did she try and call the bottom of oil again?

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Nope but she was asked about her forecast on oil prices that she made months ago. She probably learned her lesson.
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Now another question from a black congresswoman about 'subsidies' for "big banks" because the Fed is paying interest on bank reserves with the Fed while blacks can't find work. What is the Fed going to do about that?

Yellen gave a lesson how rates are managed by the Fed and how the Fed's "profits" are returned to the U.S. Treasury for congress to spend. "If we don't pay interest on reserves, we will see a rapid shrinking of the Fed's balance sheet which will have a negative effect on the economy due to rising interest rates."

The congresswoman basically admitted she didn't understand Yellen's answer and then went into a diatribe about black unemployment. The committee chair cut her off because her time had expired.

DJ is up 34 points.