Yellen's testimony to the Senate Banking Committee provides a good summary of what the Fed is contending with so far in 2014

Yellen's testimony to the Senate Banking Committee provides a good summary of what the Fed is contending with so far in 2014. As expected, tapering is expected to continue at a measured pace. Barring any unforeseen circumstances, bond purchases will end in the fall. However, that timeline is not set in stone. The rate of tapering could certainly be impacted by economic data. The Fed is closely monitoring recent data in an attempt to determine if weakness is due to temporary factors - namely, bad weather. March numbers are going to provide an important test in that regard. Yellen also reiterated the Fed's plan to keep interest rates at current levels until unemployment drops below 6.5% and inflation doesn't climb above 2.5%. However, she acknowledged the unemployment threshold may change given the problems with the accuracy of the unemployment rate.