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Fed's Yellen says 'reasonable' for Congress to want explanations

PALO ALTO, Calif. (Reuters) - Federal Reserve Chair Janet Yellen on Thursday said it is “reasonable” for Congress to ask questions about Fed policy and why certain decisions deviate from recommendations from well-known monetary policy rules.

But in response to a question from Stanford professor John Taylor, Yellen reiterated her opposition to a proposed law that would require the Fed to stick to Taylor’s well-known policy rule and to submit to an audit should it deviate. Such a law, she said, opens the Fed to short-term political pressures.

Reporting by Ann Saphir; Editing Diane Craft

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