“Janet Yellen was confirmed today as the first woman to lead the U.S. Federal Reserve — becoming one of the most powerful people in global finance and the top regulator in the U.S. financial system.
The Center for Public Integrity spoke to Yellen in June about her views on bank regulation and supervision. The incoming Fed chairwoman appears to be someone who will be tougher than her predecessor when it comes to financial oversight.
When it comes to monetary policy by contrast, Yellen is known as a “dove,” someone who favors lowering interest rates to help boost job growth at the risk of allowing some inflation.
On Fed policy:
“I would be strongly committed to working with the FOMC to continue promoting a robust economic recovery … I consider it imperative that we do what we can to promote a very strong recovery.”
“About 36 percent of those unemployed have been unemployed for more than six months. This is a very unprecedented situation. We know that those long spells of unemployment are particularly painful for households, impose great hardships and costs on those without work, on the marriages of those who suffer these long unemployment spells and on their families.”
On financial stability:
“One of our top priorities is ramping up and monitoring of the financial system as a whole to detect financial stability risks. That’s something we weren’t doing on an adequate basis before the crisis.”
“We cannot rule out the possibility that monetary policy might have to do something related to financial stability … Monetary policy could be creating financial risk, even while we’re trying to achieve other concrete goals … We need to know what those risks are.’’
On mega-bank regulation….”Comments »