Yellen: Depth and breadth of U.S. inequality ‘greatly concern me’
Federal Reserve Chair Janet Yellen on Friday expressed deep concern over widening economic inequality in the country and called for tackling issues such as early childhood education and encouraging entrepreneurship to help narrow the gap.
In a speech at the Federal Reserve Bank of Boston, Yellen said steady growth in inequality over the past several decades represents the most sustained rise since the 19th century. Living standards for most Americans have been “stagnant,” while those at the very top have enjoyed significant wealth and income gains, she said.
“I think it is appropriate to ask whether this trend is compatible with values rooted in our nation’s history, among them the high value Americans have traditionally placed on equality of opportunity,” Yellen said in prepared remarks.
The problem of inequality is an unusual topic for the leader of the Fed, if only because the central bank’s ability to address the issue is limited. Yellen listed four factors that can influence economic opportunity: investing in education for young children, making college more affordable, encouraging entrepreneurship and building inheritance.
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/17/yellen-depth-and-breadth-of-u-s-inequality-greatly-concern-me/
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