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Yellen warns loud against FED oversight bill

Federal Reserve Chair, Janet Yellen warned against a bill, which is being considered on the floor of House of Representatives, known as FED oversight bill. According to her, the bill if becomes law would severely damage US economy. In a letter to House speaker Paul Ryan and democratic leader Nancy Pelosi, Janet Yellen said the bill could severely impair FED's ability to pursue dual mandate.

The bill includes rules that will require FED to act (hike or cut) according to established Mathematical formula such as Taylor rule and Government accountability office would be responsible for over sighting if FED has met the criteria.

The bill, which was introduced in the house in July is scheduled for a vote this week.

If the rule, do becomes the law, it will totally change, how FED responses during crisis and boom, impacting global financial market as a whole.

According to Ms. Yellen, such an approach will lead to poor economic outcomes and severely undermine FED's independence and make it more susceptible to political pressure.

Many senators, both in republican and democrat camp is not very pleased with FED's response to 2008/09 crisis.

However, the bill even if passes through the house, likely to face challenges in democrat controlled senate, while President Obama can veto it down if it reaches White House.

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July 27 21:00 UTC Released

KRBOK Manufacturing BSI*

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81 %

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81 %

July 27 15:00 UTC Released

USKC Fed Composite Index

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10 mln

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11 mln

July 27 23:00 UTC 1414m

JPCPI Core Tokyo YY*

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0.1 %

July 27 23:00 UTC 1414m

JPCPI, Overall Tokyo*

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-0.3 %

July 27 23:00 UTC 1414m

KRIndustrial Output YY*

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0.1 %

July 27 23:00 UTC 1414m

KRService Sector Output Gr*

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-0.3 %

July 27 23:00 UTC 1414m

KRIndustrial Output Growth*

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0.2 %

July 27 23:01 UTC 1515m

GBBank Lending MM*

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-11 %

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-10 %

July 27 23:01 UTC 1515m

JPJobs/Applicants Ratio

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-11 %

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-10 %

July 27 23:30 UTC 4444m

JPKC Fed Manufacturing

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0.6 %

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-0.1 %

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