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Fed Chairwoman Uneasy About the Economy

Janet Yellen spooked markets.

Federal Reserve Chair Janet Yellen testified before Congress on Tuesday, forecasting a less than positive economic future. Speaking before the Senate Banking Committee, Yellen said "the economic outlook is very uncertain” and stressed the rates of long-term unemployment are at "unprecedented levels historically." Though Yellen said the economy is doing better, she said it still needs the central bank’s support and refused to give a specific timeline for raising short-term interest rates. Overall, Yellen was extremely cautious about saying anything too optimistic about the economy. "We have seen false dawns" before, she siad. Yellen testified at 10 a.m. and all economic indexes dropped by 11:30 a.m.