— Investors: Many would like assurance that the Fed is monitoring threats posed by its enormous holdings of Treasury and mortgage bonds. The Fed's investment portfolio has swollen to a record $4.1 trillion. Some investors fear that all the money the Fed has pumped into the financial system might be inflating dangerous bubbles in assets from stocks to real estate. Some also worry that once the Fed starts to sell its investments, it could destabilize financial markets.
— Yellen: She'll likely defend the Fed's bond buying and argue that once it had pushed short-term rates near zero, it had to use unconventional programs to support the economy. She'll likely stress that the Fed is monitoring financial markets and has the means to defuse any bubbles. At her confirmation hearing, Yellen made clear she still saw unemployment as a serious problem and felt the Fed's low-rate policies were still needed.