Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
September 16, 2014

Yellen: Fed Won’t Clean Up Financial World’s Mistakes

Neil Irwin writes that Janet Yellen’s speech to the IMF yesterday “tells us a great deal about how she will deal with new risks on the horizon from financial bubbles.”

“Ms. Yellen stakes out her position in about as clear a language as you’ll see from a central banker: She believes that it would most likely be a bad idea to raise interest rates to fight financial excesses. Her focus, crucially, is not on preventing Wall Street from having ups and downs, but on making sure that those ups and downs don’t bring economic disaster.”

“But the most interesting parts of Ms. Yellen’s speech were not so much her cataloging of specific tools the Fed is using to try to address financial risk … It was in her use of recent experiences in the United States and abroad to explain why she thinks interest rate policy is a poor substitute for good regulation.”

“Ms. Yellen is putting banks and everyone else in the financial world on notice: The Fed is not going to protect you from making mistakes. It is just going to try to ensure that if you do make them, the rest of us won’t pay the consequences.”

  • embo66

    “Ms. Yellen is putting banks and everyone else in the financial world on notice: The Fed is not going to protect you from making mistakes. It is just going to try to ensure that if you do make them, the rest of us won’t pay the consequences.”

    If Irwin is correct in his interpretation of Ms. Yellin’s remarks . . . I’d say AWESOME! It’s about damn time somebody told the spoiled frat-boy gamblers on Wall Street that their free ride is over.

  • Progressive Republican

    It’s.

    About.

    Damned.

    Time.

    *yeesh*

  • YONATAN C

    Sadly there are still three million unemployed families still without an extension of their benefits since late last December, because of the lack of compassion of the republican senate. While congress quickly approved an aid package for the Ukraine, in the billions of dollars, they decided to leave these unemployed families in financial ruin without help. The republicans have shown a total lack of human compassion, and common decency in the matter. They preferred to fight tooth and nail to pass the Koch brothers oil pipeline bill, than to help unemployed homeless families in need. Over the past six months they have stalled and delayed the vote in order to make it impossible to be passed. Now they have totally disregarded these millions of people, and have just walked away from the issue. Where is their so called “family values” that they’re so proud of?

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...