Wall Street Journal (02/27/14) Jon Hilsenrath; Pedro Nicolaci da Costa
Bad weather may account for the soft economic data making headlines during the past few weeks, U.S. Federal Reserve chairman Janet Yellen told members of the Senate Banking Committee, but she isn’t sure. Despite the uncertainty, the Fed likely will cut its monthly bond purchases to $55 billion at the next meeting, scheduled for March 18-19. The central bank may consider continuing its bond-buying program longer than planned if the economic sluggishness continues, but Yellen played down the likelihood of such a move. She said continuing the program would be considered only if the Fed’s forecast for the economy changes significantly.
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