Yellen to join Brookings Institution after leaving Fed

  • Yellen to join Brookings Institution after leaving Fed

Yellen to join Brookings Institution after leaving Fed

Outgoing Federal Reserve Chair Janet Yellen said USA stocks and commercial real estate prices are elevated but stopped short of saying those markets are in a bubble.

Concurrently with the Fed action, Wells Fargo will replace three current board members by April and a fourth by the end of the year.

Yellen added that the enforcement action the Fed is taking will ensure Wells Fargo is not going to expand until it can do so in a safe manner and with protections in place that are needed to manage all its risks and to protect all its customers.

In a tweet Friday, Bernanke said, "I congratulate Janet on her outstanding public service and look forward to being her colleague at the Brookings Institution". "This is better than nearly anybody four years ago thought we could do, my guess including Janet Yellen".

The Washington think tank announced that Yellen will be joining the institution's Hutchins Center on Fiscal and Monetary Policy as a distinguished fellow in residence. Powell is to be sworn in as chair tomorrow, February 5 at 9am.

The San Francisco-based bank issued the estimate after Friday's consent order with the Fed required the replacement of four board members and restricted Wells Fargo's financial growth.

In a statement, Wells Fargo CEO Timothy Sloan said the bank is "focused on addressing all of the Federal Reserve's concerns".

The Yellen-led Fed continued to support the bond purchases in the face of skepticism.

"Ultimately it's limited by productivity growth, which is weak", she said.

The unemployment rate has reached a 17-year low of 4.1 percent with still-low inflation. Maximum employment is one of the two mandates Congress lays out for the Fed.

Transcripts of Fed meetings from fall 2008, when Lehman Brothers' collapse ignited the most risky phase of the financial crisis, show that Yellen helped drive the Fed to unleash about everything in its economic arsenal, including slashing its key short-term interest rate to a record low near zero.

Powell, who has served on the Fed board with Yellen since 2012, ended his remarks by popping the collar of his suit jacket. The announcement came hours before Yellen's term was to expire, hitting the biggest bank in her former district.

Janet Yellen leaves the with the economy clicking, the stock market humming and the central bank on a clear path away from the emergency policies it put into place to help rescue the US from the deep throes of the financial crisis. She first served as a governor under Chairman Alan Greenspan in 1994 to 1997, before chairing the White House Council of Economic Advisers from 1997 to 1999 during the Clinton administration.

Trump was highly critical of Yellen during the 2016 election but praised her after becoming president.