Labor Market Still a Concern For Fed's Yellen

Washington, DC, Feb. 11, 2014 -- It appears the Federal Reserve will stay the course under new Chair Janet Yellen.

Yellen, testifying before a congressional commitee, said the central bank is likely to keep reducing policy stimulus b ut would continue to keep its eye on the labor market.

Although the unemployment rate has fallen from 8.1% to 6.6% since the financial crisis, Yellen said that the rate is still well above acceptable levels.

Yellen also said she supports the approach taken by former Fed Chair Ben Bernanke.

The Fed has cut its asset purchases twice since December and now buys $65 billion in Treasuries and mortgage bonds each month.