Fed Chair Yellen will be presenting her semi-annual monetary policy testimony - sometimes called the "Humphrey-Hawkins" testimony - today (Senate Banking Committee) and tomorrow (House Financial Services Committee). She is not expected to stray too far from the most recent FOMC statement's "On the one hand, there is recent strong labor market data; but on the other hand, the broader set of US activity data has not been as robust recently, and the inflation outlook has dimmed," uncertainty. The Q&A will of course contain the most fireworks (if last year's Yellen vs Warren deathmatch is anything to go by). Notably, The Fed will also release its semi-annual Monetary Policy Report (which last year contained the warning "valuation metrics in some sectors do appear substantially stretched.") Policy... *YELLEN: `PATIENT' MEANS LIFTOFF UNLIKELY FOR COUPLE OF MEETINGS *YELLEN: GUIDANCE CHANGE TO MEAN LIFTOFF POSSIBLE AT ANY MEETING *YELLEN: FED WILL RAISE WHEN `REASONABLY CONFIDENT' ON INFLATION *YELLEN: FED WILL CHANGE FORWARD GUIDANCE BEFORE RAISING RATES *YELLEN SAYS FED WILL REDUCE BALANCE SHEET GRADUALLY *YELLEN: NEW GUIDANCE NOT NECESSARILY LIFTOFF IN COUPLE MEETINGS *YELLEN: BALANCE SHEET REDUCTION MAINLY VIA HALTING REINVESTMENT Macro... *YELLEN SAYS GDP STRONG ENOUGH TO GRADUALLY LOWER JOBLESS RATE *YELLEN: LOWER OIL PRICES SIGNIFICANT NET PLUS FOR U.S. ECONOMY *YELLEN SAYS FOREIGN DEVELOPMENTS COULD POSE RISKS TO U.S. *YELLEN SAYS LOWER BOND YIELDS PARTLY REFLECT WEAKNESS OVERSEAS *YELLEN SAYS CHINA COULD SLOW MORE AND EURO AREA FACES RISKS *YELLEN SAYS RISKS FACING FOREIGN OUTLOOK NOT JUST ON DOWNSIDE *YELLEN SAYS INFLATION TO FALL FURTHER IN NEAR TERM *YELLEN SAYS IMPROVING JOBS AND FADING OIL IMPACT TO LIFT PRICES Yellen is due to start her prepared remarks at 10ET... * * * Here is the Feds' Master Plan - according to Deutsche bank... * * * Yellen's prepared remarks below: Yellen Feb 24 Testimony by zerohedge