The Federal Reserve will do all it can to ensure U.S. recovery remains on track, as the economy is still not as healthy as it should be, Fed Chair Janet Yellen said Wednesday.
The U.S. central bank is currently purchasing $65 billion in Treasury and mortgage debt a month to spur recovery, a monetary policy tool known as quantitative easing that suppresses long-term borrowing costs to encourage investing and hiring.
Side effects include rising stock and commodities prices and a weaker dollar.
"I will also continue the work of helping repair the damage done by the financial crisis to the economy. Too many Americans still can''t find a job or are forced to work part-time. The goals set by Congress for the Federal Reserve are clear: maximum employment and stable prices," Yellen said in prepared remarks at a swearing-in ceremony in Washington earlier.
"It is equally clear that the economy continues to operate considerably short of these objectives. I promise to do all that I can, working with my fellow policymakers, to achieve the very important goals Congress has assigned to the Federal Reserve."
Yellen, who formally took control of the Fed on Feb. 3, said she would stick with her predecessor Ben Bernanke''s transparency policies, which include greater forward guidance and press conferences following monetary policy decisions.
"Such communication is vital in a democracy and especially important for the Federal Reserve, which relies on the confidence of the public to be effective in carrying out its mission," Yellen said.
"Chairman Bernanke initiated press conferences in 2011 as one of a number of steps to make the Federal Reserve more transparent and accountable, and I promise to build on his legacy."
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