Part ofmonetary policy →

FEDERALhearing transcript

High Impact

Federal Reserve Monetary Policy Oversight Hearing (July 2015)

Original title: FEDERAL RESERVE'S SECOND MONETARY POLICY REPORT FOR 2015

January 1, 2015

monetary policy federal reserve interest rates unemployment financial regulation economic oversight

Track this bill to get notified when it advances a stage. One tap to stop, anytime.

The Frame

What this does

The Federal Reserve's decisions on interest rates and balance sheet management directly influence the cost of borrowing for mortgages, credit cards, and business loans for all Americans.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

U.S. Households

Interest rate policies set by the Federal Reserve influence the cost of consumer loans and the returns on personal savings.

Financial Institutions

Banks are subject to stress tests and regulatory oversight conducted by the Federal Reserve.

What changed

Last recorded activity January 1, 2015.

What's next

Next step not available in the current record.

Summary

This document is a transcript of a Senate Banking Committee hearing where Federal Reserve Chair Janet Yellen testified regarding the Fed's monetary policy report. The hearing focused on the Fed's $4.5 trillion balance sheet, current interest rate strategies, and the transparency of the Federal Open Market Committee.

Key Facts

The Federal Reserve's balance sheet reached a size of $4.5 trillion.
The Federal Reserve holds approximately 20 percent of all outstanding U.S. Treasury securities.
The Federal Reserve continues to reinvest proceeds from matured mortgage-backed securities into new mortgage-backed securities.
The unemployment rate in 2015 was reported at 5.3 percent or lower.
The Federal Open Market Committee previously indicated it would adjust interest rate policy once unemployment fell to 5.6 percent.
The hearing was held pursuant to the Full Employment and Balanced Growth Act of 1978.
Chairman Shelby expressed concerns regarding the transparency of the Federal Open Market Committee compared to the European Central Bank and the Bank of England.

Why It Matters

The Federal Reserve's decisions on interest rates and balance sheet management directly influence the cost of borrowing for mortgages, credit cards, and business loans for all Americans.

Frequently Asked Questions

Why does the Federal Reserve's balance sheet size matter to me?

The size of the balance sheet reflects the amount of assets the Fed has purchased to influence the economy; large holdings can impact interest rates and the overall supply of money in the financial system.

What is the 'Monetary Policy Report'?

It is a report required by law that the Federal Reserve submits to Congress twice a year to explain its economic outlook and policy goals.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Interest Rate Policy Divergence

The hearing highlights a tension between the Fed's stated unemployment threshold for rate hikes (5.6%) and the actual economic conditions (5.3%) at the time.

Federal Reserve Janet L. Yellen

Connected Entities

personJanet L. Yellen“Chair of the Board of Governors of the Federal Reserve System”Map →

organizationFederal Reserve“Central bank of the United States”Map →

personRichard C. Shelby“Chairman of the Senate Committee on Banking, Housing, and Urban Affairs”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance85
How much this matters to a regular citizen
Controversy60
Intensity of disagreement among stakeholders
Entertainment20
Compellingness for a non-policy-wonk reader
Buzz10
Current news / social attention level

Publisher tools