Although we work through financial markets, our goal is to help Main Street, not Wall Street.
Janet YellenRead
There is always some chance of recession in any year. But the evidence suggests that expansions don't die of old age.
Interpretation
What this quote means
Recessions are inevitable, but economic expansions typically continue unless disrupted by significant events.
Janet Yellen's quote emphasizes the cyclical nature of the economy, indicating that while recessions can happen unexpectedly in any given year, periods of economic growth (expansions) generally do not end simply due to the passage of time. Instead, expansions often continue until they are interrupted by external factors such as financial crises or policy changes, suggesting a more resilient nature of growth compared to the occurrence of downturns.
Themes
EconomyRecessionExpansionGrowthCycles
In practice
Example use cases
In a financial seminar discussing market trends, one might quote Yellen to highlight the resilience of economic growth.
More from Janet Yellen
All quotes βWe need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policy makers cannot wait until they have achieved their objectives to begin adjusting policy.
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A clear lesson of history is that a 'sine qua non' for sustained economic recovery following a financial crisis is a thoroughgoing repair of the financial system.
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Transparency concerning the Federal Reserve's conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy. More important, however, is that transparent communications reflect the Federal Reserve's commitment to accountability within our democratic system of government.
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For decades, the pace of technological change in manufacturing has outstripped that in the economy as a whole. And, so, firms - manufacturing firms - have found it easier to continue producing by - with - reducing their workforces.
Janet YellenRead
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 YellenRead
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