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Yellen will hold her own: Russell Investments Dueker

Wednesday, November 13, 2013 - 03:39

Nov. 13 - Mike Dueker, Chief Economist at Russell Investments says while there will be fireworks at Fed Chairman Nominee Janet Yellen's Senate Banking Committee hearing, he expects a solid performance. Jeanne Yurman reports.

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Janet Yellen vice chair of the Federal Reserve is headed to Capitol Hill on Thursday. She is set to face senate banking committee. It's one of the necessary steps before she is voted on as possibly the next chair of the Federal Reserve. We are now joined by might do perky is the chief economist Russell investments thanks for joining us Mike. Thank you -- Let's start very broadly what do you expect to hear from these hearings on Thursday. Well I think that one question that Danielle and will probably face to be a question about the Fed's inflation objective. In January 2000 the Fed first formally adopted 2% inflation target. And then in 2013 we know that they have announced that they're willing to tolerate inflation up to two and a half percent as long as. In in the unemployment rate remains above 7% so. The question is are -- six point 5%. So that is the question is is the Fed on a slippery slope and will the feds allow incrementally higher inflation objectives as it goes. I think that's Taiwan question that she would face. In his confirmation hearing. Now how do you expect that she's going to handle herself. Because certainly the Republicans are going to be looking for opportunities to trip her up. I think that she is completely prepared says answer any and all questions. Just given her. The depth of her background -- for years as a professor. For years on the FOMC. As a governor and then as the Fed president and also is fed vice chair. She has a wealth of experience -- trying to answer any and all questions I think in I would have expected she would do extremely well tomorrow and in the hearing. Yeah a lot of people who know her who worked with authors say she's their shrinking violet. Should probably hold her own. But. And you know are there any key challenges though that shall have to look out for. Well -- probably have to answer some tough questions about. How the Fed will actually. Restores balance -- to a more normal size. Down the road perhaps in 20172018. The Fed would have to. Shrink as balanced feed back to a more normal size as and does the quantitative easing so they'll try to be some questions about exactly how the Fed intends to do that. That's -- I won't wanna go and any great details or or commit herself in any particular way. But she would give assurances that the Fed has the tools at its disposal to do this and and noninflationary way. Now in a prior conversation you said if there is drama. We're probably not gonna see as much drama between senators and yellen as we will amongst the senators that right. Yes I think if there any real sharp exchanges tomorrow I would expect those to happen between senators and not necessarily between. Janet Yellen and and a senator. One thing you and you might see is that some of the so called soft the tough questions would actually be given by a Democrats. Senate democratic senators. Who want to get some of these issues out of the -- so to speak and get them out in front and then so if the Republican and as -- as -- follow later. You might see a response over there democratic senators say well we are asked that question Mary went over that. And that could be as sort of sharp exchange might see tomorrow. Well we're allowed to be very interested to see how things turn out. Mike -- we do thank you for your time that's might do agree the chief economist of Russell investments. I'm -- -- this is Reuters.

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Yellen will hold her own: Russell Investments Dueker

Wednesday, November 13, 2013 - 03:39