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.
Janet YellenRead
Although we work through financial markets, our goal is to help Main Street, not Wall Street.
Interpretation
What this quote means
The focus should be on benefiting everyday people rather than financial institutions.
Janet Yellen emphasizes that the primary aim of economic policies and financial markets should be to support and uplift the everyday citizens, or 'Main Street', rather than serving the interests of large financial entities found on 'Wall Street'. This statement advocates for policies that promote the welfare of the general public rather than prioritizing the needs of the financial elite.
Themes
EconomyMain StreetFinancial MarketsPublic WelfarePolicy
In practice
Example use cases
This quote can be used in a speech advocating for public policy reforms.
More from Janet Yellen
All quotes βA 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.
Janet YellenRead
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.
Janet YellenRead
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
In government institutions and in teaching, you need to inspire confidence. To achieve credibility, you have to very clearly explain what you are doing and why. The same principles apply to businesses.
Janet YellenRead
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Economic policies absorb almost the entire attention of government, and at the same time become ever more impotent. The simplest things, which only fifty years ago one could do without difficulty, cannot get done any more. The richer a society, the more impossible it become to do worthwhile things without immediate payoff.
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