Yellen faces tough sell on Fed rate hikes in CongressWASHINGTON/SAN FRANCISCO (Reuters) - Federal Reserve Chair Janet Yellen will defend the U.S. central bank’s first rate hike in a decade and likely insist that further rises this year remain on track, albeit at a slower pace, when she addresses Congress on Wednesday. Yellen, who is certain to be grilled by lawmakers on whether the economy really is ready for higher rates, will point to continued strong jobs growth even as financial markets have all but priced out any rate hikes this year and as signs of stress in the global financial system have re-emerged amid volatile markets. The Fed Chair also is likely to find herself in heated exchanges with lawmakers over the bank’s perceived secrecy, with presidential candidates from both sides of the aisle now taking regular shots at the Fed on the campaign trail. “I think that markets probably have over-reacted to the sense that the Fed won’t raise rates any time soon,” said Vincent Reinhart, visiting scholar at the American Enterprise Institute and former head of the Fed’s monetary affairs division.  The House Financial Services Committee hearing is set for 10 a.m. EST (1500 GMT) on Wednesday, followed on Thursday at 10 a.m. EST by a Senate Banking Committee hearing. U.S. growth slowed to 0.7 percent rate in the fourth quarter as weak global demand weighed on the economy. But the housing sector strengthened, unemployment fell to 4.9 percent last month and, in a relief for the Fed, wages jumped in January by the most in a year. Vice Chair Stanley Fischer and other Fed officials have recently backed off predictions of about four rate hikes this year, noting that plunging oil prices mean U.S. inflation could take longer to rise to a 2 percent goal. But policymakers have stressed that it is too soon to scrap forecasts for continued U.S. strength in 2016. Some have noted that a similarly severe market selloff in August and September did not derail the economy as much as initially feared. “September is ... a case where there were tighter financial conditions, and they didn’t last that long and then we moved off (zero rates),” Cleveland Fed President Loretta Mester, a voter on Fed policy this year, said last week. The Fed overcame deep market skepticism that it would initiate a hiking cycle when it pulled off its first rate rise in almost a decade in December last year. At a twice-yearly appearances before Congress, the Fed chair is often peppered with barbed questions about the central bank’s effectiveness, regulatory chops and commitment to congressionally set goals, both from Republicans like House Financial Services Chair Jeb Hensarling as well as Democrats like Elizabeth Warren, who sits on the Senate Banking Committee. Some of the top presidential candidates, including Republican Senator Ted Cruz and Democratic Senator Bernie Sanders, are calling for major reforms to the Fed.  All of that could complicate things for Yellen as she tries to keep alive the prospect of further rate rises even as she acknowledges the threat posed by a slowing global economy. “We must not forget, after all, that despite the financial market rout and the pain in the mining and manufacturing sector, the Fed has gotten closer to meeting both of its mandates,” said Harm Bandholz, chief U.S. economist at Unicredit, after data on Tuesday showed job openings surged in December. politicsNews
ellen faces tough sell fed rate hikes francisco reuters federal reserve chair janet ellen defend central bank first rate hike decade likely insist rises year remain track albeit slower pace addresses congress wednesday ellen certain grilled lawmakers whether economy really ready higher rates point continued strong jobs growth even financial markets priced rate hikes year signs stress global financial system amid volatile markets the fed chair also likely find heated exchanges lawmakers bank perceived secrecy presidential candidates sides aisle taking regular shots fed campaign trail i think markets probably sense fed raise rates time soon said vincent reinhart visiting scholar american enterprise institute former head fed monetary affairs division the house financial services committee hearing set est gt wednesday followed thursday est senate banking committee hearing growth slowed percent rate fourth quarter weak global demand weighed economy but housing sector strengthened unemployment fell percent last month relief fed wages jumped january year vice chair stanley fischer fed officials recently backed predictions four rate hikes year noting plugging oil prices mean inflation could take longer rise percent goal but policymakers stressed soon scrap forecasts continued strength some noted similarly severe market selloff august september derail economy much initially feared september case tighter financial conditions last long moved zero rates cleveland fed president rosetta master voter fed policy year said last week the fed overcame deep market skepticism would initiate hiking cycle pulled first rate rise almost decade december last year at appearances congress fed chair often pepper barbed questions central bank effectiveness regulatory chops commitment congressional set goals republicans like house financial services chair jeb hensarling well democrats like elizabeth warren sits senate banking committee some top presidential candidates including republican senator ted cruz democratic senator bernie sanders calling major reforms fed all could complicate things ellen tries keep alive prospect rate rises even acknowledges threat posed slowing global economy we must forget despite financial market rout pain mining manufacturing sector fed gotten closer meeting mandates said harm bandholz chief economist unicredit data tuesday showed job openings surged december politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Yellen faces tough sell on Fed rate hikes in CongressWASHINGTON/SAN FRANCISCO (Reuters) - Federal Reserve Chair Janet Yellen will defend the U.S. central bank’s first rate hike in a decade and likely insist that further rises this year remain on track, albeit at a slower pace, when she addresses Congress on Wednesday. Yellen, who is certain to be grilled by lawmakers on whether the economy really is ready for higher rates, will point to continued strong jobs growth even as financial markets have all but priced out any rate hikes this year and as signs of stress in the global financial system have re-emerged amid volatile markets. The Fed Chair also is likely to find herself in heated exchanges with lawmakers over the bank’s perceived secrecy, with presidential candidates from both sides of the aisle now taking regular shots at the Fed on the campaign trail. “I think that markets probably have over-reacted to the sense that the Fed won’t raise rates any time soon,” said Vincent Reinhart, visiting scholar at the American Enterprise Institute and former head of the Fed’s monetary affairs division.  The House Financial Services Committee hearing is set for 10 a.m. EST (1500 GMT) on Wednesday, followed on Thursday at 10 a.m. EST by a Senate Banking Committee hearing. U.S. growth slowed to 0.7 percent rate in the fourth quarter as weak global demand weighed on the economy. But the housing sector strengthened, unemployment fell to 4.9 percent last month and, in a relief for the Fed, wages jumped in January by the most in a year. Vice Chair Stanley Fischer and other Fed officials have recently backed off predictions of about four rate hikes this year, noting that plunging oil prices mean U.S. inflation could take longer to rise to a 2 percent goal. But policymakers have stressed that it is too soon to scrap forecasts for continued U.S. strength in 2016. Some have noted that a similarly severe market selloff in August and September did not derail the economy as much as initially feared. “September is ... a case where there were tighter financial conditions, and they didn’t last that long and then we moved off (zero rates),” Cleveland Fed President Loretta Mester, a voter on Fed policy this year, said last week. The Fed overcame deep market skepticism that it would initiate a hiking cycle when it pulled off its first rate rise in almost a decade in December last year. At a twice-yearly appearances before Congress, the Fed chair is often peppered with barbed questions about the central bank’s effectiveness, regulatory chops and commitment to congressionally set goals, both from Republicans like House Financial Services Chair Jeb Hensarling as well as Democrats like Elizabeth Warren, who sits on the Senate Banking Committee. Some of the top presidential candidates, including Republican Senator Ted Cruz and Democratic Senator Bernie Sanders, are calling for major reforms to the Fed.  All of that could complicate things for Yellen as she tries to keep alive the prospect of further rate rises even as she acknowledges the threat posed by a slowing global economy. “We must not forget, after all, that despite the financial market rout and the pain in the mining and manufacturing sector, the Fed has gotten closer to meeting both of its mandates,” said Harm Bandholz, chief U.S. economist at Unicredit, after data on Tuesday showed job openings surged in December. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: ellen faces tough sell fed rate hikes francisco reuters federal reserve chair janet ellen defend central bank first rate hike decade likely insist rises year remain track albeit slower pace addresses congress wednesday ellen certain grilled lawmakers whether economy really ready higher rates point continued strong jobs growth even financial markets priced rate hikes year signs stress global financial system amid volatile markets the fed chair also likely find heated exchanges lawmakers bank perceived secrecy presidential candidates sides aisle taking regular shots fed campaign trail i think markets probably sense fed raise rates time soon said vincent reinhart visiting scholar american enterprise institute former head fed monetary affairs division the house financial services committee hearing set est gt wednesday followed thursday est senate banking committee hearing growth slowed percent rate fourth quarter weak global demand weighed economy but housing sector strengthened unemployment fell percent last month relief fed wages jumped january year vice chair stanley fischer fed officials recently backed predictions four rate hikes year noting plugging oil prices mean inflation could take longer rise percent goal but policymakers stressed soon scrap forecasts continued strength some noted similarly severe market selloff august september derail economy much initially feared september case tighter financial conditions last long moved zero rates cleveland fed president rosetta master voter fed policy year said last week the fed overcame deep market skepticism would initiate hiking cycle pulled first rate rise almost decade december last year at appearances congress fed chair often pepper barbed questions central bank effectiveness regulatory chops commitment congressional set goals republicans like house financial services chair jeb hensarling well democrats like elizabeth warren sits senate banking committee some top presidential candidates including republican senator ted cruz democratic senator bernie sanders calling major reforms fed all could complicate things ellen tries keep alive prospect rate rises even acknowledges threat posed slowing global economy we must forget despite financial market rout pain mining manufacturing sector fed gotten closer meeting mandates said harm bandholz chief economist unicredit data tuesday showed job openings surged december politicsnews