Federal Reserve Chair Janet Yellen announced that if the economy improves, the Fed would continue to scale back on it's monthly bond purchasing stimulus plan.
Yellen, in her first public statement since taking over for former chairman Ben Bernanke on Feb. 3, said the Fed would see how the economy plays out over the next few weeks before making a final decision about whether it would continue to decrease the amount of Treasury bonds purchased each month.
"We have to be very careful not to jump to conclusions," Yellen said in front of the Financial Services Committee on Feb. 11. "We had unseasonably cold temperatures affect economic activity and the job market."
Decreasing plan the last few months
The Fed is currently purchasing $65 billion a month in bonds from the Treasury Department. The Fed has been steadily decreasing the bond buying program by $10 billion over the last few months.
One indicator the Fed will look at when assessing whether they will further cut the stimulus program is job growth. Employment has been improving over the course of 2013. Between the months of August and November, the U.S. had an average monthly job growth of 200,000 a month, according to USA Today. This rapid ascension of job additions petered out in December 2013 when only 75,000 new jobs were added, but the economy rebounded in January 2014 as 113,000 new jobs were created.
Unemployment rate dwindles down
Although January's numbers were not as strong as the other months of the year, it helped decrease the unemployment rate to 6.6 percent, which is the lowest the rate has been in five years. Yellen said at the committee hearing she is confident the economy will improve over the next few months, but the Fed is going to be cautious with their future predictions.
"My colleagues on the FOMC [Federal Open Market Committee] and I anticipate that economic activity and employment will expand at a moderate pace this year and next, the unemployment rate will continue to decline toward its longer-run sustainable level, and inflation will move back toward 2 percent over coming years," Yellen said in a statement.
The Fed will meet on March 18-19 to decide whether they will be further cutting the stimulus program.
Manufacturers and other businesses who are looking to add experienced workers to their staffs in order to meet demands can consult with manufacturing recruiters.