Fed has more work to do to help US economy, says Yellen

Janet Yellen, President Barack Obama’s nominee to lead the Federal Reserve, thinks the US central bank has “more work to do” to help an economy and a labour market that are still under-performing.

“I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy,” Ms Yellen, the Fed’s vice chair, said in remarks prepared for delivery to the Senate Banking Committee.

Her testimony appeared aimed in part at pre-empting Republicans on the panel who are critical of the Fed’s unorthodox and aggressive monetary policy.