The Economy

Yellen Says Financial Crisis Unlikely in Her Lifetime

But the Federal Reserve Chair cautions against unwinding the reforms put in place after the 2008-2009 crisis.
William SprouseJune 28, 2017

The Chair of the U.S. Federal Reserve, Janet Yellen, said she did not believe there would be another financial crisis in her lifetime, citing the strength of reforms instituted in the wake of the 2007-2009 global crash.

Fed Chair Janet Yellen

Fed Chair Janet Yellen Official portrait of Vice Chair Janet L. Yellen. Dr. Yellen took office as Vice Chair of the Board of Governors of the Federal Reserve System on October 4, 2010, for a four-year term ending October 4, 2014. She simultaneously began a 14-year term as a member of the Board that will expire January 31, 2024.For more information, visit

“Would I say there will never, ever be another financial crisis?” Yellen said. “You know probably that would be going too far, but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be,” according to a report from Reuters.

Yellen said the financial system was stronger due to post-crisis reforms.

4 Powerful Communication Strategies for Your Next Board Meeting

4 Powerful Communication Strategies for Your Next Board Meeting

This whitepaper outlines four powerful strategies to amplify board meeting conversations during a time of economic volatility. 

“I think the public can see the capital positions of the major banks are very much stronger this year,” she said. “All of the firms passed the quantitative parts of the stress tests.”

Yellen said that the crisis would have been “worse than the Great Depression” without the Fed’s intervention.

The success of recent stress tests has prompted some banks to call for an easing of post-crisis regulations, but Yellen said unwinding the reforms would “not be a good thing,” and she urged those involved in coping with the last crisis to speak out to prevent a rollback. Last week, 34 out of 34 banks made it through the Fed’s annual stress tests with sufficient capital to weather a crisis.

President Donald Trump campaigned on a promise to cut banking regulation, and the Treasury Department has proposed easing restrictions on big banks.

Yellen said she had a good working relationship with U.S. Treasury Secretary Steve Mnuchin. She declined to comment on her relationship with Trump.

She also said the Fed would raise interest rates gradually and reduce its stockpile of bonds “gradually and predictably.”

Yellen was speaking on Tuesday with Lord Nicholas Stern, the president of the British Academy.