Although we work through financial markets, our goal is to help Main Street, not Wall Street.
Janet YellenRead
Monetary policy ultimately must be conducted in a pragmatic manner that relies not on any particular indicator or model but, instead, reflects an ongoing assessment of a wide range of information in the context of our ever-evolving understanding of the economy.
Interpretation
What this quote means
Monetary policy should be flexible and based on a broad understanding of economic conditions rather than strict adherence to specific models.
Janet Yellen emphasizes the importance of a pragmatic approach to monetary policy, suggesting that it should not be rigidly tied to specific indicators or models. Instead, policy-makers should continuously evaluate a variety of economic information, adapting their strategies to the changing dynamics of the economy to achieve effective results.
Themes
Monetary PolicyEconomyFlexibilityPragmatismAssessment
In practice
Example use cases
In a speech about economic strategies, a speaker might say, 'As Janet Yellen noted, monetary policy must evolve with the economy.'
More from Janet Yellen
All quotes →We 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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By adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government.
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