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What Yellen's Fed tenure will be remembered for

05 February 2018

"I would have liked to serve an additional term and I did make that clear, so I will say I was disappointed not to be reappointed", she said Friday on PBS NewsHour in a rare television interview.

As Janet Yellen's tenure comes to an end, it's worth reflecting on what may be her greatest accomplishment as chair of the Federal Reserve: With calm and dispassionate competence, she kept the central bank at arm's length from a political system paralyzed by partisan strife.

"The financial system is much better capitalized", Yellen said.

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Yellen was an experienced Fed governor before taking the top job, but she wasn't tested by crisis like her predecessor, Ben Bernanke.

But Yellen said that she was grateful for the Fed career she did have which covered not only a four-year term as Fed chair but also serving as Fed vice chair for four years before that and also service as president of the Fed's San Francisco regional bank.

Speaking to CBS's Sunday Morning, she noted that it has been common for Fed chairs to receive a second term even when they were first nominated by a president of the other party. Regulators can't allow "pervasive and persistent misconduct at any bank", Yellen said in a statement. Mr Powell has said recently that he intends to continue in a similar direction as Janet Yellen had adopted, however there could always be a deviation at any moment in reaction to economic data or events. The current unemployment rate of 4.1 percent is a 17-year low; the annual core inflation rate is nearing the Fed's target of 2 percent, with no sign of significantly exceeding it; wages rose 2.6 percent last year.

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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. "Yes, it can keep going", she said. The labor market is nearing full employment, inflation's mild, and Wall Street bulls are running. Since she took control in February 2014, the Dow Jones Industrial Average has risen by more than 65 per cent.

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 USA from the deep throes of the financial crisis. Powell will be sworn in Monday.

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What Yellen's Fed tenure will be remembered for