Yellen faces challenges as Federal Reserve trims bond buys

By Martin Crutsinger

Associated Press

Published: Tuesday, Jan. 7 2014 9:00 a.m. MST

Last month, the Fed said the low rates will continue "well past" when the unemployment rates falls to 6.5 percent. Unemployment was 7 percent in November and many economists think the low interest rates will last until late 2015.

Yellen will also guide the Fed at a time when some Republicans say the central bank needs to be more accountable to Congress. Hensarling has already said his committee will spend a year reviewing Fed operations.

Last week, Bernanke voiced concerns about legislation giving the Government Accountability Office, Congress' auditing arm, more power to examine how the Fed makes interest rate decisions. Bernanke said such legislation would make it harder to assure markets that its decisions aren't influenced by political pressure.

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