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Jim O'Sullivan, chief economist at High Frequency Economics, said Yellen's statement definitely had a "dovish tone." He said, "There is certainly no hint about imminent tapering." On regulatory policy, Yellen said she was committed to using the Fed's powers to "reduce the threat of another financial crisis." She said she believes strict rules on the capital reserves that banks most hold to protect against losses are crucial to preventing the failures of large institutions that could destabilize the financial system. "Our country has come a long way since the dark days of the financial crisis, but we have farther to go," Yellen said in her prepared remarks. The Fed released Yellen's brief three-page opening statement the day before her confirmation hearing before the Senate Banking Committee. She is expected to win approval by the committee and by the full Senate to succeed Bernanke, whose second four-year term as chairman will end Jan. 31.
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