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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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September 20 11:00 UTC Released

USMBA 30-Yr Mortgage Rate

Actual

4.04 %

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Previous

4.03 %

September 20 11:00 UTC Released

USMortgage Refinance Index

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1497.8 %

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1636.8 %

September 20 14:00 UTC 6969m

USExisting Home Sales

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5.46 Mln

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5.44 Mln

September 20 14:00 UTC 6969m

USExist. Home Sales % Chg

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0.3 %

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-1.3 %

September 20 14:30 UTC 9999m

TRCentral Govt Debt Stock*

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817.1 Bln TRY

September 20 15:30 UTC 159159m

BRForeign Exchange Flows*

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-1.251 Bln USD

September 21 08:30 UTC 11791179m

GBPSNB, MM GBP

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-0.76 Bln GBP

September 21 08:30 UTC 11791179m

GBPSNCR, MM GBP

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-3.912 Bln GBP

September 21 08:30 UTC 11791179m

GBPSNB Ex Banks GBP

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7.100 Bln GBP

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-0.184 Bln GBP

September 21 12:00 UTC 13891389m

BRIPCA-15 Mid-Month CPI

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0.15 %

Previous

0.35 %

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