Yellen Defends Fed Against Lawmaker Criticism on Independence
by Christopher CondonSteve Matthews
11:32 AM EST February 25, 2015
(Bloomberg) -- Federal Reserve Chair Janet Yellen said the central bank won’t let its independence be compromised and doesn’t allow the executive branch to influence monetary policy.
“The Federal Reserve is independent,” Yellen told the House Financial Services Committee on Wednesday in response to a question about her regular meetings with Treasury Secretary Jacob J. Lew. “I do not discuss monetary policy or actions we are going to take with the secretary.”
In an exchange with Representative William Huizenga, a Michigan Republican, Yellen said “it is obviously critically important that the Federal Reserve be accountable to Congress. We are accountable to Congress.”
In testimony before the Senate Banking Committee Tuesday, Yellen strongly criticized a proposal to allow congressional audits of the Fed’s monetary policy.
Huizenga told Yellen on Wednesday that “it’s my understanding that you hold weekly or near-weekly meetings” with Lew and asked, “shouldn’t we be equally concerned about threats posed by executive interference?”
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http://www.bloomberg.com/news/articles/2015-02-25/yellen-defends-fed-against-lawmaker-criticism-on-independence
