Senator Reed dialogue with Federal Reserve chair about interest rates

Rhode Island Senator Jack Reed asks Federal Reserve Chair Janet Yellen to explain how the so-called Taylor rule for measuring interest and financial market ramifications for raising the rate and its impact on constituents, higher than the Federal Open Markets Committee have deemed necessary given the needs of the economy. Yellen says that would result in a weaker economy if the reserve had followed the Taylor formula, including higher unemployment. Yellen refers to a recent speech at Stanford, where she expressed a preference for current methods in the aftermath of the financial crisis rather than the formula which would put estimates closer to zero. Yellen and read discuss Dodd Frank supervision and cyber security in private sector banking, where the threat is ubiquitous, Yellen calling cybersecurity a major, major risk to financial firms, whom she says are aware of the risks but may not have an enterprisewide view of capabilities within their institutions, needing expertise.