WASHINGTON (2/12/14)--Substantial progress has been made in restoring the economy to health and in strengthening the financial system, but there is still more to do, Federal Reserve Chair Janet Yellen said Tuesday.
"Too many Americans remain unemployed, inflation remains below our longer-run objective, and the work of making the financial system more robust has not yet been completed," she said in remarks delivered before the House Financial Services Committee. Yellen was delivering the Fed's semi-annual monetary policy report for the first time since becoming Fed chair earlier this month.
Yellen said the Fed will develop a risk-based capital surcharge proposal and a long-term debt requirement for U.S.-based, systemically important global banks. The Fed is also working to advance proposals on margins for noncleared derivatives, consistent with a new global framework, and are evaluating possible measures to address financial stability risks associated with short-term wholesale funding, she said.
The Fed board will continue to monitor for emerging risks, including watching carefully to see if the regulatory reforms work as intended, Yellen added.
She said the Fed's approach to monetary policy will not change in the near future.
For her full prepared remarks, use the resource link.