Janet Yellen

We certainly felt in December when we made our decision to raise rates that the economy was recovering, that inflation would move up, and it would likely be appropriate to gradually continue to raise rates, not to cut them.

More jobs are good for the economy.

We only want to move to more normal levels of interest rates if it is consistent with achieving our objectives of 2 percent inflation and maximum employment.

So it is up to Congress to decide----if changes are necessary.

I recognize that regulatory burden is a significant issue for many banks.

Each member of the Board of Governors and members of the FDIC Board are charged with arriving at our own individual judgments as to whether or not these living wills are credible or facilitate resolution, and I cannot guarantee you that we…

There has been consolidation. We are concerned about the burdens on community banks

The downturn probably accelerated those trends that perhaps relate to globalization and technological change that are demanding increased skill

I would like to distinguish between a systematic approach to monetary policy, which I believe we have put in place, and a system that we use that is in line with what other advanced central banks do and a mechanical, mathematical…

We are very focused on regulatory burden on community banks

House prices are recovering. They have increased quite a bit, and I think that is helping the financial situation of many households.

Senator, yes, I agree with what you said.

It certainly helps. We have also put in place requirements for adequate--our so-called TLAC rules for adequate loss absorbency.

I think we cannot be satisfied that we have full employment without full employment across demographic lines, meaning women and minorities, especially.

Well, from my point of view, and I think from the point of view of the FOMC, more jobs are always good, employment is good.

We have articulated in a clear statement what our objectives are: 2 percent inflation and our interpretation of maximum employment.

Consumer protection is a very important part of our supervision

So we are seeing a recovery, I would say, in housing. It has gone on now for a number of years, but it is very, very gradual.

I do think we have made very substantial strides toward dealing with it, toward addressing it.

It is essentially a theory that fits reasonably, but certainly not perfect, explaining the inflation process.

We are committed to a formal rulemaking process in the development of a domestic insurance capital standard.

I want to be careful. I think that Governors certainly are entitled--they have substantial responsibilities.

I am certainly willing to work with you on that, but as your comment indicated, you recognize the importance of independence for regulatory agencies that we not be subject to executive branch review.

On balance, I would say it is still true for the United States.

Monetary policy will be set and calibrated to do the best we can to achieve our congressionally mandated objectives.