Saturday, October 18, 2014

Federal Reserve head addresses income inequality

Janet Yellen is very concerned with the widening income inequality in America and what that portends for economic opportunity.  The full text of her speech is on the Federal Reserve web site. Following are snippets from a summary at motherjones.com.

On Friday, Janet Yellen presented a thorough speech outlining the inherent problems income inequality presents to the American ideology, proving once again she is committed to using her role as Federal Reserve chair to tackle widening income inequality rates.
"The extent of and continuing increase in inequality in the United States greatly concern me," Yellen told the Federal Reserve of Boston. "The past several decades have seen the most sustained rise in inequality since the 19th century after more than 40 years of narrowing inequality following the Great Depression."
“I think it is appropriate to ask whether this trend is compatible with values rooted in our nation’s history, among them the high value Americans have traditionally placed on equality of opportunity," she added.
While Yellen's speech on Friday made no mention of any specific policy changes the Federal Reserve may take on to combat inequality rates, it did signal a significant shift in how the Federal Reserve views inequality as a serious hindrance to the country's economic health.

Amen to that.

No comments:

Post a Comment