Yellen's first testimony: what can we expect?

The new Federal Reserve Chair Janet Yellen will testify before the House Financial Services Committee today at 3pm (London time). 

During her Q&A session, Ms Yellen has the tricky role today of trying to explain why there is such divergence in the US jobs report, especially when the Federal Reserve has anchored its monetary policy around the unemployment rate.

The jobless rate in the US has dropped to its lowest in over five years which tells us that quantitative easing has worked, but Ms Yellen is likely to slow down the pace of tapering. Although the bond-buying scheme has been trimmed twice in as many months, Ms Yellen is likely to put the brakes on today due to her well-known dovish views.

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