Janet Yellen Talks about her Life with the Federal Reserve

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Janet Yellen, chair of the U.S. Federal Reserve, speaks during a discussion on the global economy at the British Academy in London, U.K., on Tuesday, June 27, 2017. The International Monetary Fund cut its outlook for the American economy and said the U.S. probably won't meet President Donald Trump's target of 3 percent annual growth. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

A day after saying that she will be leaving the Federal Reserve next year, Janet Yellen took time to answer some questions that had been posed to her. She was speaking at the New York University yesterday at night. For those that don’t know, Janet Yellen is the outgoing Federal Reserve chairwoman. During the question-answer appearance, she had an opportunity of discussing her time at the Federal Reserve. At the same time, she talked about how she found herself working in the money industry. Nonetheless, she refused to comment on major policies by the Federal Reserve. This could only add to the speculations whether the Fed will raise the benchmark interest rates next month. Instead, she decided to adopt an entertaining tone. She narrated about her first day at the Federal Reserve four years ago. She joked that working at the Fed Reserve requires people to take a heavier economics dose compared to what people are having elsewhere. Earlier on Monday, Janet Yellen sent a letter to Mr. Trump telling him that she would step down when her term comes to an end. This will be in early February. She has already been replaced by Jerome H. Powell, who awaits confirmation by the Senate.

She kept her composure as she was being interviewed by Melvyn King. She was appearing at the Stern School of Business. For starters, her host used to be a governor of the Bank of England. Asked about the issue of raising the interest rates, she said that she was of the opinion that the interest rates should be raised gradually. She further said that there are risks involved when they move too fast. She, on the other hand, refused to confirm whether the Fed Reserve would be raising the interest rates by a quarter of a percent. As we speak, the interest rates stand between 1.25 percent and one percent. She also confirmed that the unemployment rate had decreased to 4.1 percent in the month of October. There are speculations that the Fed wants to raise the interest rates for two reasons. First, it wants to raise the rates to ensure that it’s in a position to respond to any downtown that may be experienced by the US economy. On the other hand, raising the interest rates will be crucial in dealing with speculations that have become common with the American financial markets. She refused to comment on these two issues.

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