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16 YELLEN FACES GRILLING IN FIRST HEARING AS FED CHAIR If nothing else, Janet Yellen proved she has stamina. e newly installed Federal Reserve chair— the first woman to take the post in the institu- tion's century-long history—sat in front of the House Financial Services Committee for an extended session, fielding dozens of questions on topics ranging from the Fed's current direction to GSE reform. Yellen's prepared remarks for the commit- tee echoed much of what analysts have seen in recent Federal Open Market Committee (FOMC) statements, with references to a recovering (but still weakened) labor market, a slowing housing market, restrictive fiscal policy, and the usual prediction of a "moderate" expan- sion in the nation's economic activity. She also told House members not to expect any great change in policy now that she's at the helm. "[L]et me emphasize that I expect a great deal of continuity in the FOMC's approach to monetary policy," she said. "I served on the committee as we formulated our current policy strategy and I strongly support that strategy, which is designed to fulfill the Federal Reserve's statutory mandate of maximum employment and price stability." Having said that, Yellen emphasized "purchases are not on a preset course," and the FOMC's decisions about whether to taper will continue to hinge on its outlook from meeting to meeting. With the last two employment reports sug- gesting a possible slowdown in economic growth, the Fed chair was reluctant to discuss what they might mean for the possibility of further cuts to purchases in the FOMC's next meeting. "e pace of job creation [in December and January] was running under what I had antici- pated, but we have to be very careful not to jump to conclusions in interpreting what those reports mean," she said, adding that the committee has data to consider beyond employment rates. "I think it's important to take our time to assess just what the significance of this is." She also left open the possibility for a ramp- up in asset purchases should economic condi- tions deteriorate significantly. Another topic of interest for the House com- mittee was Yellen's thoughts on housing finance reform as industry players and policymakers offer up their ideas for on Fannie and Freddie, moving forward. "I think the time has come," she said. "I hope that you will deal with a reform of the GSEs, and there are a variety of ways to do it, but I think the government should make its intended role more explicit and make sure that whatever entities are set up to deal with housing finance ... don't create systemic risks to the financial system." One subject left out of the hearing was the Fed's latest round of annual capital stress tests, the results of which are expected to land this month. NEW HOUSING DATA REVEALS POSITIVE 2013 FOR FLORIDA New housing data released by Florida Realtors shows a positive 2013 for closed and pending sales. e closed sales for existing single-family homes totaled 227,411, up 11.8 percent from 2012. Pending sales figures were also positive, up 17.6 percent compared to 2012. Data was compiled from the Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards and associations. "roughout 2013, the state's housing mar- ket has demonstrated it's in a solid recovery and gaining strength," said Florida Realtors president Sherri Meadows. "e positive fun- damentals of Florida's housing sector continue into 2014. However, factors remain that could slow an even stronger economic recovery, such as limited inventories of for-sale homes in many areas, overly restrictive mortgage credit, rising interest rates, and concerns about the cost and availability of property and flood insurance." e median sales price rose to $168,000, up 15.9 percent from the previous year. Quarterly results were equally optimistic, with closed sales reflecting a 4.7 percent gain from the fourth quarter of 2012. "We have seen all these numbers before in the monthly releases, but looking at them on a quarterly and annual basis allows for a better evaluation of the real estate market. e trends we have seen develop over the year— rising sales and prices, declining percentage of cash sales, and stabilizing inventory—are confirmed in these statistics," said Dr. John Tuccillo, Florida Realtors chief economist. e statewide single-family existing-home median price in Q 4 2013 was $170,000, up 13.3 percent from Q 4 2012. Homes that were purchased and flipped made up 4.6 percent of U.S. home sales in 2013, according to RealtyTrac. KNOW THIS

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