Europe needs to be 'forceful': Fed's Yellen (by Steve Goldstein)

WASHINGTON (MarketWatch) -- Europe needs to take "forceful" action to stem the debt crisis, according to Federal Reserve Vice Chair Janet Yellen. "The [October] package was a step in the right direction, but many details of the plan were unclear, and the measures would require rigorous implementation. The continued rise in sovereign debt spreads for some countries, more generalized market volatility, and political turmoil that we have seen in recent days speak to the need for forceful action to stabilize the situation," she said at a Chicago Fed conference. In a speech about pursuing financial stability, Yellen said money-market funds, triparty repos, exchange-traded funds and collateralized commercial paper may raise systemic risk, as she also called for more study about the use of countercylical margin and haircut rules for funding contracts.