Janet Yellen

my hope and expectation is that would change, and if we can generate a more robust recovery in the context of price stability, that all Americans will see more meaningful increases in their well-being.

It is extremely important for our banks to have more capital, higher-quality capital.

We have had widening wage inequality and income inequality in this country going back to the mid- to late-1980s, and that continues.

I think it is important for Congress to recognize that as the economy recovers and both short- and long-term rates move up, a situation in which the Government's funding costs remain as low as they are, if we are successful in achieving…

I think our objective in regulation should be to put in place tough enough regulations and capital and liquidity standards that would level the playing field.

While many of us believe that the Dodd-Frank Act already gives the Federal Reserve the authority to distinguish between insurance companies and banks when promulgating capital standards under the Collins Amendment, the Federal Reserve has…

You cannot let a bubble continue to grow.

I sent a letter along with Sen. Johanns in July of 2012 to President Obama calling attention to this statutory requirement.

I think we failed completely to understand the complexity of what the impact of a decline, a national decline in housing prices would be in the financial system.

I believe guidance came out in 2006, I believe it was, to the supervisors and to banks stating essentially that banks with high exposures needed to carefully manage risks around these exposures.

I would describe the guidance that came out as weak and the material loss reviews that have been done of the institutions that we supervise essentially say that this was the pitfall.

We have enormous responsibilities that will be given to us under this legislation.

I am wholeheartedly committed to pursuing the Federal Reserve's Congressionally mandated goals of maximum employment and price stability.

The first key challenge will be to improve our supervision particularly of the largest and most complex bank holding companies.

We are being asked in this bill, appropriately so, to raise capital standards and liquidity standards for these institutions.

I strongly support the Fed's dual mandate and pay close attention to both inflation and employment at all times.

We have learned a harsh lesson about the dire consequences a financial crisis has for ordinary Americans in the form of lost jobs, lost homes, lost wealth, and lost businesses.

I think we were monitoring housing prices very carefully and became concerned certainly by 2005 that there might well be a bubble in the housing market.

I am honored to appear before you as President Obama's nominee to serve as a member and Vice Chair of the Board of Governors of the Federal Reserve System.

the Federal Reserve has just concluded actually on Tuesday 40-odd sessions we have had around the country

I think personally I gave speeches in 2005 warning of that possibility.

I would hope that going forward, one thing we have learned from this crisis is there is a need for all of us in regulation to act in a timely way to take away the punch bowl and to require more stringent capital requirements.

I agree with Chairman Bernanke that an increase in the long-run inflation objective to 4 percent would be a risky policy strategy.

We must work together and in cooperation with central banks and governments around the world to mitigate systemic risk in the financial and payment systems.