• Fed Chair Janet Yellen sees “pockets of increased risk-taking across the financial system”

Market news

2 July 2014

Fed Chair Janet Yellen sees “pockets of increased risk-taking across the financial system”

The Federal Reserve Chair Janet Yellen was speaking at an inaugural central banking lecture at the IMF in Washington:

  • There is no need to change monetary policy to address financial stability concerns;
  • She sees "pockets of increased risk-taking across the financial system";
  • "Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment";
  • The monetary policy should focus on jobs and inflation;
  • "Monetary policy faces significant limitations as a tool to promote financial stability";
  • The crisis would not have been prevented or significantly mitigated by substantially tighter monetary policy in the mid-2000s.

The transcript of the whole speech by Janet Yellen can be found here.

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