Housing wealth – the net equity held by households, consisting of the value of their homes minus their mortgage debt – is the most important source of wealth for all but those at the very top. – Janet Yellen
Maturity transformation is a central part of the economic function of banks and many other types of financial intermediaries. – Janet Yellen
It’s pretty rare to just talk to people who are having a tough time in the economy, to hear their individual stories. – Janet Yellen
The Federal Reserve’s objectives of maximum employment and price stability do not, by themselves, ensure a strong pace of economic growth or an improvement in living standards. The most important factor determining living standards is productivity growth, defined as increases in how much can be produced in an hour of work. – Janet Yellen
New policy tools, which helped the Federal Reserve respond to the financial crisis and Great Recession, are likely to remain useful in dealing with future downturns. – Janet Yellen
To me, the greatest asset of the Fed is the people. We have a tremendously dedicated staff… They feel proud to work for the Fed because this is such a competent, professional and well-respected organization. – Janet Yellen
My advice would be, as you consider fiscal policies, to keep in mind and look carefully at the impact those policies are likely to have on the economy’s productive capacity, on productivity growth, and to the maximum extent possible, choose policies that would improve that long-run growth and productivity outlook. – Janet Yellen
During the 1970s, inflation expectations rose markedly because the Federal Reserve allowed actual inflation to ratchet up persistently in response to economic disruptions – a development that made it more difficult to stabilize both inflation and employment. – Janet Yellen
The financial crisis and the Great Recession demonstrated, in a dramatic and unmistakable manner, how extraordinarily vulnerable are the large share of American families with very few assets to fall back on. We have come far from the worst moments of the crisis, and the economy continues to improve. – Janet Yellen
Over a long period of time, technological change is something that has been important in reducing manufacturing employment – absolutely and as a share of jobs in the economy. – Janet Yellen
An increase in shareholder value can arise for reasons other than greater efficiency, such as increased power and the resulting ability to increase profits by raising prices. – Janet Yellen
The Global Financial Crisis and Great Recession posed daunting new challenges for central banks around the world and spurred innovations in the design, implementation, and communication of monetary policy. – Janet Yellen
Some degree of inequality in income and wealth, of course, would occur even with completely equal opportunity because variations in effort, skill, and luck will produce variations in outcomes. – Janet Yellen
I continue to think many of the factors holding down inflation are transitory… We want to be careful not to jump to a premature conclusion about what’s in store for the U.S. economy. – Janet Yellen
Although most Americans apparently loathe inflation, Yale economists have argued that a little inflation may be necessary to grease the wheels of the labor market and enable efficiency-enhancing changes in relative pay to occur without requiring nominal wage cuts by workers. – Janet Yellen
Inequality has risen to the point that it seems to me worthwhile for the U.S. to seriously consider taking the risk of making our economy more rewarding for more of the people. – Janet Yellen
If there is a job that you feel passionate about, do what you can to pursue that job; if there is a purpose about which you are passionate, dedicate yourself to that purpose. – Janet Yellen
The principle that a central bank, charged with controlling inflation, should be independent from the government is unassailable. It may also be true that it’s easier for the central bank to guard its independence from political pressure when it mainly holds government securities. – Janet Yellen
I felt that the Fed had always been the agency that picked up the pieces when there was a financial crisis, and it was invented to do exactly that. – Janet Yellen
Private sector labor market flows provide additional indications of the strength of the labor market. For example, the quits rate has tended to be pro-cyclical, since more workers voluntarily quit their jobs when they are more confident about their ability to find new ones and when firms are competing more actively for new hires. – Janet Yellen
Starting in late 2007, faced with acute financial market distress, the Federal Reserve created programs to keep credit flowing to households and businesses. The loans extended under those programs helped stabilize the financial system. – Janet Yellen
The financial sector is vital to the economy. A well-functioning financial sector promotes job creation, innovation, and inclusive economic growth. – Janet Yellen
The Federal Open Market Committee (FOMC) is committed to policies that promote maximum employment and price stability, consistent with our mandate from Congress. – Janet Yellen
Expanded credit access has helped households maintain living standards when suffering job loss, illness, or other unexpected contingencies. – Janet Yellen
Strapped by tight credit and plummeting sales, businesses have overhauled the way they manage supply chains, inventory, production practices and staffing. – Janet Yellen
Stronger productivity growth would tend to raise the average level of interest rates and, therefore, would provide the Federal Reserve with greater scope to ease monetary policy in the event of a recession. – Janet Yellen
A wide range of possible fiscal policy tools and approaches could enhance the cyclical stability of the economy. For example, steps could be taken to increase the effectiveness of the automatic stabilizers, and some economists have proposed that greater fiscal support could be usefully provided to state and local governments during recessions. – Janet Yellen
