FED: SF Fed Pres Yellen’s speech (dove, votes on FOMC in 2012) at U-San
Diego says “I believe this is not the time to be removing monetary
stimulus.” She says econ recovery is well underway but unemployment is
unacceptably high and she is not convinced of V-recovery. She only wants
to tighten after recovery is well underway. Says US economy will
remain below potential in 2010-11. Says “sales of mortgage-related and
Treasury securities could be disruptive to markets and cause mortgage
interest rates and other long-term rates to shoot up when we are still
in early stages of recovery”; favored alternative is to raise rate on
reserves held at Fed. Wants to gradually sell assets after tightening
has begun.