Janet Yellen

Janet Yellen
Janet Yellen
Born	Janet Louise Yellen; August 13, 1946 (age 80); Bay Ridge, Brooklyn, New York City, U.S.
Occupation(s)	Economist, professor
Years active	1971–present
Known for	78th United States Secretary of the Treasury, Chair of the Federal Reserve, Chair of the Council of Economic Advisers

Janet Louise Yellen (born August 13, 1946) is a prominent American economist who held the position of the 78th United States secretary of the treasury from 2021 until 2025 and previously served as chair of the Federal Reserve between 2014 and 2018. She was a trailblazer as the first female to occupy either role and also headed the White House Council of Economic Advisers. Currently, Yellen is the Eugene E. and Catherine M. Trefethen Professor of Business Administration and Economics at the University of California, Berkeley.

Originating from Bay Ridge, Brooklyn, Yellen completed her undergraduate studies at Brown University in 1967 and obtained her Ph.D. in economics from Yale University in 1971. Her academic career includes teaching at Harvard University from 1971 to 1976, working as a staff economist for the Federal Reserve Board during 1977–1978, and instructing at the London School of Economics between 1978 and 1980. Since 1980, she has been part of Berkeley's faculty at the Haas School of Business, where she holds an endowed professorship.

Yellen's public service record features her membership on the Federal Reserve Board of Governors from 1994 to 1997, appointed by President Bill Clinton, who subsequently designated her chair of the Council of Economic Advisers from 1997 to 1999. After returning to academia for some time, she served as president and CEO of the Federal Reserve Bank of San Francisco from 2004 until 2010. President Barack Obama named her vice chair of the Federal Reserve (2010–2014) before elevating her to chair in 2014. Her tenure ended when President Donald Trump opted not to renominate her, leading to her succession by Jerome Powell. Following her Federal Reserve service, Yellen became a distinguished fellow at the Brookings Institution until reentering government in 2020.

On November 30, 2020, President-elect Joe Biden announced Yellen's nomination for secretary of the treasury; she received Senate confirmation on January 25, 2021, and was officially sworn in by Vice President Kamala Harris the following day.

Early life and education

Born on August 13, 1946, in Bay Ridge, Brooklyn, New York City, Yellen comes from a Polish Jewish family background. Her mother, Anna Ruth (née Blumenthal), transitioned from elementary school teaching to full-time motherhood, while her father, Julius Yellen, practiced as a family physician. She has an elder brother named John, who serves as a program director in archaeology at the National Science Foundation.

During a presentation at the POLIN Museum of the History of Polish Jews, Yellen shared that her paternal ancestors emigrated from Sokołów Podlaski near Warsaw—a community where many Jewish residents, including numerous family members, perished during the Holocaust.

Yellen attended Fort Hamilton High School where she was inducted into the honor society and acted as editor-in-chief for The Pilot, the school newspaper that maintained its winning streak in contests held by the Columbia Scholastic Press Association. She earned a National Merit commendation and graduated as valedictorian in 1963. Additionally, she took part in an exclusive science honors program offered by Columbia University.

Initially enrolling at Pembroke College within Brown University to study philosophy, Yellen shifted her focus to economics under mentors George Herbert Borts and Herschel Grossman. She briefly contributed to The Brown Daily Herald’s business staff before dedicating herself fully to academics. Graduating summa cum laude and elected to Phi Beta Kappa with a bachelor's degree in economics in 1967, she proceeded to Yale University for graduate studies where she earned both master’s and Ph.D. degrees in economics by 1971. Her doctoral dissertation—guided by Nobel Prize winner James Tobin—examined employment patterns and capital accumulation within an open economy framework.

Yellen’s detailed notes taken during Tobin’s macroeconomics lectures gained recognition as an unofficial textbook known colloquially as "Yellen Notes." Nobel laureate Joseph Stiglitz has referred to her as one of his most outstanding students. She attributes much of her economic philosophy to lifelong mentorships with Yale professors Tobin and William Brainard. Notably, she was the sole woman among approximately twenty-four economists who completed their doctorates at Yale in 1971.

Academic career

Following the completion of her doctoral degree, Yellen held the position of assistant professor of economics at Harvard University between 1971 and 1976, distinguishing herself as one of only two women on the faculty within that department. In 1977, after not being granted tenure, she transitioned to the Federal Reserve's Board of Governors as a staff economist, having been recruited by Edwin M. Truman to conduct research on international monetary reform.

During her tenure at the Fed, Yellen met economist George Akerlof, whom she wed in 1978. When Akerlof accepted a role at the London School of Economics, Yellen left the Federal Reserve to accept a tenure-track lectureship there. After spending two years in the United Kingdom, they returned to the United States.

In 1980, Yellen joined the faculty at the University of California, Berkeley, specifically at the Haas School of Business, where she dedicated over twenty years to macroeconomic research and teaching undergraduate and MBA courses. She received Haas’s distinguished teaching award twice and became only the second woman to be granted tenure at Haas in 1982, advancing to full professor by 1985. In 1992, she was appointed Bernard T. Rocca Jr. Professor of International Business and Trade.

Between 1994 and 1999, Yellen took a hiatus from Berkeley for public service but subsequently returned to teaching with a joint appointment in Berkeley's Department of Economics. In 1999, she was named Eugene E. and Catherine M. Trefethen Professor of Business Administration and Economics. She remained actively engaged until her 2004 selection as president and CEO of the Federal Reserve Bank of San Francisco. In 2006, she was granted emeritus professor status.

Yellen has provided expert advice to entities such as the Congressional Budget Office, Brookings Panel on Economic Activity, and the National Science Foundation’s Panel in Economics. She served as a research associate at the National Bureau of Economic Research from 1999 through 2010. In 2025, she joined the advisory board of Angeleno Group, a private equity and venture capital firm focused on investments in sustainable energy.

Contributions to economics

Yellen’s scholarly contributions primarily address unemployment dynamics, labor market behavior, monetary and fiscal policy frameworks, as well as international trade issues. She has produced numerous influential publications, often collaborating with her husband, Professor George Akerlof.

Efficiency wage models

Beginning in the 1980s, Yellen and Akerlof advanced theories related to "efficiency wages," which suggest that compensating employees above prevailing market wages enhances productivity. Their seminal 1990 article, "The Fair-Wage Effort Hypothesis and Unemployment," introduced this idea and had a profound influence on economic thought. They also developed the gift-exchange game, illustrating that workers who receive wages below what they perceive as fair deliberately reduce their work effort as a form of employer retaliation.

Reproductive technology shock

In their 1996 paper titled "An Analysis of Out-of-Wedlock Childbearing in the United States," co-authored with Michael Katz, Yellen and Akerlof investigated the increase in births outside marriage. They formulated the "reproductive technology shock" hypothesis, which connects expanded access to abortion and contraception during the late 1960s and early 1970s with a reduction in societal stigma toward unwed motherhood. This transformation also affected biological fathers' willingness to uphold conventional marital and paternal roles.

Federal Reserve (1994–1997)

On April 22, 1994, President Bill Clinton nominated Yellen to join the Federal Reserve Board of Governors, with Alan Blinder appointed as vice chairman. They marked the first Democratic members appointed to the Board since 1980. Clinton described her as "one of the leading economists of her generation specializing in the intersection of macroeconomics and labor markets." The decision largely rested with NEC Director Robert Rubin, Treasury Secretary Lloyd Bentsen, and CEA Chair Laura Tyson, all of whom had collaborated with Yellen at Berkeley. After evaluating nearly 50 candidates, they selected her.

During her confirmation hearing before the Senate Banking Committee in July 1994, Yellen highlighted that Federal Reserve policies should encourage economic expansion without triggering inflationary pressures, though she refrained from committing to additional interest rate hikes. The Senate Banking Committee approved her nomination by a vote of 18–1, with Senator Lauch Faircloth as the sole dissenter. The full Senate confirmed her appointment 94–6. On August 12, 1994, she commenced a full 14-year term, filling the vacancy left by Republican Wayne Angell. She became the fourth woman to serve as governor and marked the first occasion where two women served concurrently on the Federal Reserve Board.

By July 1996, as unemployment figures improved, Yellen opposed increasing interest rates. Drawing on academic studies, she convinced Chairman Alan Greenspan that targeting a moderate inflation rate was preferable to aiming for zero inflation. Research suggested that maintaining inflation near 2 percent better facilitates lowering unemployment and sustaining economic growth compared to pursuing zero inflation.

After being confirmed as chair of the Council of Economic Advisers, Yellen stepped down from the Federal Reserve Board on February 17, 1997.

Council of Economic Advisers (1997–1999)

Yellen joined the Clinton administration on December 20, 1996, assuming the role of chair for President Clinton’s Council of Economic Advisers (CEA), succeeding Joseph Stiglitz. Although initially hesitant to leave the Federal Reserve, she was selected for her strong analytical capabilities and teamwork skills, according to Treasury Secretary Robert Rubin. The Senate unanimously confirmed her on February 13, 1997, making her the second woman to hold the position of chief economic advisor after Laura Tyson. Simultaneously, she led the OECD Economic Policy Committee from 1997 through 1999.

While serving in this capacity, Yellen supervised a June 1998 report titled "Explaining Trends in the Gender Wage Gap," which examined data spanning from 1969 to 1996 to explore reasons behind women's lower earnings relative to men. The findings revealed that although laws such as the Equal Pay Act of 1963 contributed to narrowing wage disparities—from a gap of roughly 40 percent two decades earlier down to about 25 percent—the residual gap could not be accounted for by differences in productivity but was attributed to discrimination in the labor market.

In June 1999, Yellen announced her intention to leave the CEA for personal reasons and return to teaching at UC Berkeley. It was reported that President Clinton had offered her the role of vice chairwoman at the Federal Reserve, succeeding Alice Rivlin, but she declined this opportunity.

Federal Reserve Bank of San Francisco

On April 12, 2004, the Federal Reserve revealed that Yellen would succeed Robert T. Parry as president and CEO of the Federal Reserve Bank of San Francisco, officially assuming the role on June 14. She made history as the first woman to occupy this position. In her capacity as president of the Federal Reserve District, she participated in the policy-making Federal Open Market Committee (FOMC) and was a voting member once every three years, beginning in 2006. The San Francisco Fed is recognized as the largest among the 12 Federal Reserve Banks in terms of both population and economic activity.

Throughout her leadership, Yellen publicly minimized concerns regarding the rapidly expanding housing market but internally expressed serious worries about banks’ substantial exposure to high-risk construction and residential development loans. Nevertheless, she did not spearhead initiatives to restrain the widespread lending practices of Countrywide Financial, which was then the largest mortgage lender in the United States.

On June 5, 2009, Yellen recommended increasing interest rates sooner to avert another housing bubble, contending that elevating short-term rates could help curb demand for housing and risky mortgage products.

By July 2009, Yellen was viewed as a potential candidate to replace Chairman Ben Bernanke before his renomination. By March 2010, she had become the frontrunner for the position of vice chair of the Federal Reserve Board. After receiving Senate approval, she stepped down from her role at the San Francisco Fed in October 2010.

Vice Chair of the Federal Reserve

President Barack Obama nominated Yellen on April 28, 2010, to take over from Donald Kohn as vice chair of the Federal Reserve. Despite opposition from Senator Richard Shelby, who criticized her involvement during the regional housing bubble, she was confirmed by the Senate Banking Committee in July 2010 with a vote of 17–6.

During this period, FOMC member James B. Bullard cautioned about a potential "Japanese-style deflationary outcome" for the U.S. economy, indicating a possible shift toward more accommodative monetary policies. The confirmations of Yellen along with nominees Peter Diamond and Sarah Bloom Raskin were interpreted as reinforcing this policy direction.

On September 29, 2010, Yellen and Raskin were confirmed by the Senate to serve on the board of governors, with Yellen appointed vice chair for a four-year term. She commenced a 14-year term on the Federal Reserve Board, filling a vacancy last held by Mark W. Olson. Yellen became only the second woman to hold the Fed’s second-highest position after Alice Rivlin.

In her role as vice chair, Yellen demonstrated significant independence by urging Chairman Bernanke and FOMC members to pursue more assertive monetary stimulus aimed at lowering unemployment. She was instrumental in establishing the Federal Reserve’s two percent inflation target after collaborating extensively with Bernanke; previously, she had supported inflation targeting despite opposition from Chairman Greenspan during the 1990s.

Yellen was widely seen as the leading candidate to succeed Bernanke as Fed chair when his term concluded. Her primary rival was Lawrence Summers, former Treasury Secretary and director of the National Economic Council. However, Summers encountered bipartisan criticism related to his involvement in banking deregulation and controversial comments about women in STEM disciplines.

In July 2013, more than one-third of Senate Democrats signed a letter urging President Obama to appoint Yellen as Fed chair. Furthermore, over 500 economists representing roughly 200 U.S. universities endorsed her nomination. Facing growing resistance, Summers withdrew his candidacy in September 2013, clearing the way for Yellen’s appointment.

Chair of the Federal Reserve

On October 9, 2013, Yellen was nominated to succeed Bernanke as chair of the Federal Reserve, marking the first time a vice chair was promoted to this role. President Obama described her as "one of the nation’s leading economists and policymakers" and a strong advocate for American workers. During her confirmation hearings in November, she defended the Federal Reserve’s $3 trillion stimulus initiative and highlighted the importance of vigilant oversight of asset bubbles, committing to proactive measures if any were identified.

The Senate voted 59–34 to invoke cloture on December 20, 2013, and confirmed her appointment by a narrow 56–26 margin on January 6, 2014—the slimmest confirmation margin ever recorded for this position. Yellen became the first woman to head the U.S. central bank as well as a major global central bank, and the first Democrat appointed since Paul Volcker in 1979. She officially assumed office on February 3, 2014, with her title designated simply as "chair" to reflect gender neutrality. Prior to her, only one woman had led a G8 central bank.

In congressional testimony in July 2014, Yellen observed that while prices in real estate, stocks, and corporate bonds had increased, overall valuations remained generally consistent with historical averages. She acknowledged concerns regarding lower-rated corporate debt but did not believe an "everything bubble" was present. Her approach emphasized cautious surveillance without undue alarm.

On December 16, 2015, under Yellen’s stewardship, the Federal Reserve raised its benchmark interest rate for the first time since 2006, signaling a shift away from prolonged near-zero rates that could threaten financial stability. This decision marked a break from the previously established "Greenspan put" policy. The Fed proceeded with four additional rate hikes but maintained rates at historically low levels between 1.25% and 1.5%, reflecting a gradual normalization strategy.

Following the 2016 presidential election, Yellen actively defended the Dodd–Frank Wall Street Reform and Consumer Protection Act against attempts by President Trump’s administration to weaken its provisions. She warned that dismantling these regulations risked repeating the errors that led to the financial crisis and reiterated her support for strong financial safeguards during a speech at Jackson Hole in August 2017.

Although Trump considered reappointing Yellen in November 2017, he ultimately selected Republican Jerome Powell based on Treasury Secretary Mnuchin’s recommendation. Despite having a Fed governor term extending through 2024, Yellen announced her resignation after Powell’s appointment. Her tenure lasted one term—the shortest since G. William Miller (1978–1979)—and she became only the second Fed chair not retained by an incoming administration, representing an uncommon break from tradition.

On February 2, 2018, Yellen imposed unprecedented sanctions on Wells Fargo—the third-largest U.S. bank—limiting its growth until it resolved internal compliance failures tied to widespread consumer abuses stemming from its fake account scandal. This represented the Federal Reserve’s first-ever asset cap imposed on a financial institution.

Yellen is widely regarded as one of the most effective Fed chairs in terms of labor market outcomes; during her leadership unemployment dropped from 6.7% to 4.1%, reaching its lowest level in 17 years. Throughout her term, job growth occurred every month—an unparalleled achievement among Federal Reserve chairs. She concluded her tenure with unemployment at its lowest point since William McChesney Martin’s era in 1970 and oversaw the largest post-World War II reduction in unemployment by 2.6 percentage points. Despite this progress, inflation remained below the Fed’s two percent target, indicating potential capacity for further economic stimulus without triggering inflationary pressures.

Yellen holds a unique distinction in U.S. central banking history for having served as Federal Reserve chair (2014–2018), vice chair (2010–2014), president of the San Francisco Fed (2004–2010), Fed governor (1994–1997; 2010–2018), and staff economist (1977–1978). This extensive range of experience highlights her profound institutional expertise and significant influence over monetary policy decisions.

Post-Federal Reserve Period (2018–2020)

On February 2, 2018, the Brookings Institution announced that Yellen would assume the role of distinguished fellow in residence within its Economic Studies program starting February 5, 2018. She was also affiliated with the Hutchins Center on Fiscal and Monetary Policy at Brookings. Later, on July 31, 2018, Yellen, alongside James H. Stock and Louise Sheiner, was appointed co-chair of the Productivity Measurement Initiative, which seeks to enhance the accuracy and reliability of economic statistics.

Yellen departed from Brookings in November 2020 following her nomination as U.S. Treasury Secretary. During her time there, she contributed extensively to economic discourse through panel discussions, congressional testimonies, lectures, and media appearances.

On June 27, 2017, Yellen expressed confidence that another financial crisis was unlikely "in our lifetime," attributing this to stronger banking institutions under Federal Reserve supervision. However, by December 2018, she cautioned about possible future crises due to significant vulnerabilities remaining in the financial system after her Federal Reserve tenure.

In a February 25, 2019 interview on Marketplace, Yellen voiced skepticism regarding President Trump's grasp of macroeconomic policy and Federal Reserve objectives. She highlighted concerns over his attitude toward central bank independence and endorsed Jerome Powell as her preferred successor. This stance represented a departure from her previously neutral approach toward the president.

During a House Select Oversight Subcommittee hearing on July 17, 2020, focused on the coronavirus pandemic response, Yellen and former Fed Chair Bernanke advocated for robust fiscal measures. These included extending unemployment benefits, providing support to state and local governments, and increasing investment in healthcare initiatives. Yellen reiterated these recommendations in an op-ed co-authored with Jared Bernstein for The New York Times.

In August 2020, Yellen participated among economists briefing then-presumptive Democratic nominee Joe Biden and his running mate Kamala Harris on key economic issues. This engagement was one of Biden's initial announcements regarding economic advisors likely to serve in his administration.

Corporate Speaking Engagements

From 2018 through 2020, Yellen received approximately $7.2 million in fees for delivering around fifty speeches to firms across Wall Street, technology sectors, and consulting industries. This included $1 million earned from nine presentations to Citi and $800,000 from hedge fund Citadel LLC, along with paid appearances at institutions such as Barclays, Goldman Sachs, UBS, and Credit Suisse. Technology companies like Google and Salesforce also engaged her for speaking events.

Upon reentering public service, Yellen pledged to seek clearance from the Office of Government Ethics before participating in any substantive matters involving these organizations to avoid conflicts of interest.

Nomination and Senate Confirmation

Following the 2020 election, Yellen emerged as a leading candidate for the position of United States Secretary of the Treasury in President Joe Biden’s administration. She was selected over other contenders such as Federal Reserve Governor Lael Brainard and former Fed Vice Chairman Roger W. Ferguson Jr.. On November 30, 2020, then-President-elect Biden officially announced her nomination, lauding her as "one of the most important economic thinkers of our time," with a strong focus on employment and the dignity of work.

Although widely respected, Yellen’s nomination was considered unconventional due to her limited political background compared to previous Treasury Secretaries known for their political acumen—a critical attribute given Biden’s need to navigate a divided Congress to advance his economic policies. Nevertheless, all living former Treasury Secretaries publicly supported her confirmation.

The Senate Finance Committee unanimously approved her nomination (26–0) on January 22, 2021. The full Senate confirmed her appointment by a vote of 84–15 with one senator abstaining on January 25. Sworn in by Vice President Harris the following day, Yellen made history as the first woman to serve as U.S. Treasury Secretary and became the only person to have led the Treasury Department, Federal Reserve Board, and White House Council of Economic Advisers.

Among the G7 countries, only three other women—France’s Christine Lagarde, Canada’s Chrystia Freeland, and the United Kingdom’s Rachel Reeves—have held equivalent treasury positions. Additionally, Yellen’s tenure marked a historic first when she and Lynn Malerba simultaneously became the first two women whose signatures appeared together on U.S. currency.

Proposed international tax reform

In April 2021, Yellen introduced the idea of a global minimum corporate tax rate aimed at curbing profit shifting by multinational corporations to avoid tax avoidance. She emphasized the substantial advantages of implementing this tax framework for both the United States and the global economy in an article for The Wall Street Journal. On June 5, 2021, finance ministers from the G7 nations reached a consensus to reestablish a minimum global corporate tax rate of no less than 15%, marking a significant step toward modernizing the international tax landscape. France's Bruno Le Maire described this as "a starting point" for potential future increases. Shortly thereafter, Yellen joined four international finance leaders in an op-ed published in The Washington Post, characterizing the agreement as "an historic opportunity to end the race to the bottom in corporate taxation," which would restore crucial government revenues at a time of great need.

By July 2021, financial authorities from G20 countries agreed on measures designed to eliminate global tax havens, ensure that multinational enterprises pay appropriate taxes where their activities occur, and establish a "more stable and equitable international tax framework."

By October 2021, more than 130 nations—representing over 90% of worldwide GDP—including several low-tax jurisdictions that had previously opposed the initiative, ratified a historic accord through the OECD. This agreement set a global minimum corporate tax rate of 15% applicable to businesses around the world. Scheduled for implementation in 2023, the pact was projected to generate an additional $150 billion annually in tax revenues. Despite this progress, full enactment remained uncertain due to the necessity of approval by a two-thirds majority in the narrowly divided U.S. Senate and corresponding legislation within each participating country.

Debt ceiling crisis

On July 23, 2021, Yellen called on congressional leaders to raise or suspend the federal debt ceiling before it was reached in August, cautioning that failure to act would inflict "irreparable harm" on the U.S. economy. She noted that the Treasury Department would deploy "extraordinary measures" to prevent either a government shutdown or default on debt obligations.

In a Wall Street Journal op-ed dated September 19, 2021, Yellen reiterated the urgent need to increase the debt limit to avoid a financial crisis anticipated by October due to depleted Treasury cash reserves. After Congress approved a temporary extension through early December, she advocated for a more permanent resolution to secure government solvency. By November, Yellen indicated willingness to address the debt ceiling impasse without Republican backing via budget reconciliation and supported raising the limit beyond the 2024 elections to avoid political brinkmanship.

In December 2021, President Biden signed legislation that raised the debt ceiling just before Treasury’s deadline, preventing default. The bill passed mostly along party lines and extended coverage beyond the 2022 midterm elections.

Following Republicans’ takeover of the House in January 2023, Yellen warned Speaker Kevin McCarthy that the debt ceiling would be reached by January 19, necessitating extraordinary measures possibly lasting until June. She opposed GOP proposals to prioritize payments after exhausting those measures, arguing such plans would effectively trigger default due to systemic constraints.

On June 3, 2023, President Biden enacted bipartisan legislation suspending the federal debt limit throughout his first term, resolving the ongoing debt-ceiling standoff. This agreement with House Republicans was reached just two days before the projected breach that would have halted government financial commitments.

In September 2023, Yellen expressed optimism despite the federal government's debt surpassing $33 trillion.

Sanctions on Russia and the Oil Price Ceiling

In November 2021, Treasury Secretary Yellen, along with senior Treasury officials, crafted a sanctions framework designed to intensify economic pressure on Russia while limiting adverse impacts on the United States and its allies amid looming threats. Following Russia's February 2022 invasion of Ukraine, the Treasury collaborated closely with federal agencies and international partners to enforce a set of unprecedented sanctions.

Yellen was a leading advocate for imposing a price ceiling on Russian oil to reduce Kremlin revenues financing the conflict in Ukraine, while simultaneously aiming to ease inflationary pressures by ensuring steady global oil supplies. On December 2, 2022, after thorough negotiations led by the US, the G7 nations, European Union, and Australia agreed to implement a $60 per barrel cap on Russian oil prices. This cap is subject to periodic reviews to maintain it at a minimum of 5% below prevailing market rates.

Regulation of Digital Assets

On April 7, 2022, at American University's Kogod School of Business, Yellen discussed the expanding role of digital assets within the US economy. She outlined key policy objectives such as encouraging responsible innovation, safeguarding vulnerable groups during economic downturns, favoring risk-based regulation rather than technology-specific mandates, upholding sovereign currency as vital for financial stability, and promoting collaboration between public and private sectors for advancement.

Yellen also announced intentions to investigate the feasibility of a government-issued stablecoin or central bank digital currency (CBDC), examining its potential effects on monetary policy, national security, international trade, and consumer benefits. She emphasized that creating a digital dollar represents a highly complex technical endeavor that will require several years to develop.

Friendshoring in Supply Chains

In her April 13, 2022 address at the Atlantic Council, Yellen underscored vulnerabilities in supply chains dependent on commodities sourced from nations aligned with authoritarian regimes such as Russia and China. She proposed adopting a friendshoring approach that confines supply networks to allied and partner countries. Yellen cautioned that any attempts to weaken international measures holding Russia accountable would trigger robust responses from the United States and its allies. Additionally, she called for modernizing international financial institutions to confront contemporary global challenges, citing the transformative example set by the Bretton Woods Conference during World War II.

In December 2022, Yellen highlighted in a Project Syndicate article that friendshoring strategies could reduce significant risks facing the US economy—including excessive dependence on single markets for critical goods, exposure to geopolitical and security threats from adversarial states, and reliance on supply chains linked to violations of fundamental human rights, such as forced labor.

Statements Regarding Overturning of Roe v. Wade

During a Senate Banking Committee hearing on May 10, 2022, Yellen addressed the economic ramifications following the leaked draft opinion in Dobbs v. Jackson Women's Health Organization, which suggested the Supreme Court would overturn previous abortion protections established under Roe v. Wade. When Senator Bob Menendez (D-NJ) inquired about potential economic effects, Yellen responded that restricting women's autonomy over childbirth decisions would damage economic progress and reverse gains made by women over decades—heightening poverty risks and increasing dependence on social welfare programs. Senator Tim Scott (R-SC) contested her remarks, deeming it inappropriate to associate abortion debates with economic stability; however, Yellen maintained firmly: "This is not harsh. This is the truth."

Following this exchange, Senator Scott authored an opinion piece in The Washington Post condemning Yellen's assertions as "simply false" and likening them to eugenics arguments historically associated with Margaret Sanger. Numerous conservative media outlets and commentators also issued strong criticism of Yellen’s statements concerning women's reproductive rights.

Reforms at the Internal Revenue Service

After the Inflation Reduction Act was enacted in August 2022, Yellen instructed the Internal Revenue Service (IRS) to deploy an additional $80 billion in funding over a decade. This investment aims to reduce existing backlogs, enhance taxpayer support, modernize technology infrastructure, and recruit thousands of new personnel.

In June 2023, the Fiscal Responsibility Act of 2023, designed to address the debt ceiling issue, redirected more than 25% of the IRS modernization budget to other governmental priorities. Nevertheless, Yellen affirmed that the IRS retains adequate short-term resources to advance both service quality and enforcement efforts. She further highlighted the Treasury Department’s dedication to obtaining additional financing to improve operations and ensure compliance among high-income taxpayers.

Visit to Ukraine

On February 27, 2023, Yellen conducted an unexpected visit to Kyiv, reaffirming the United States’ economic backing for Ukraine amid ongoing conflict with Russia. Over the past year, the U.S. has provided close to $50 billion in security, financial, and humanitarian assistance, making it Ukraine’s largest bilateral benefactor. During her visit, she met with President Volodymyr Zelenskyy and Prime Minister Denys Shmyhal to discuss the allocation of $1.25 billion in budgetary support—the initial installment of a $10 billion civilian aid package aimed at supporting schools, hospitals, and emergency services.

Coinciding with this trip, Yellen penned an op-ed for The New York Times emphasizing America’s steadfast support and reiterating President Biden’s pledge to stand with Ukraine “for as long as it takes,” underscoring that economic aid is vital for Ukraine’s battlefield success.

Banking crisis

Amid the 2023 banking crisis, on March 12, 2023, Yellen appeared on CBS' Face the Nation to assure that financial regulators were vigilantly overseeing the banking sector’s stability and capital adequacy. Addressing the failure of Silicon Valley Bank—the second-largest bank collapse in U.S. history at that time—she noted ongoing collaboration with regulators to develop “appropriate policies” but refrained from providing specifics. She stressed that any form of bailout was not being considered. Yet later that day, Yellen authorized measures enabling the Federal Deposit Insurance Corporation (FDIC) to manage Silicon Valley Bank’s resolution by invoking a systemic risk exemption, thereby guaranteeing full protection for all depositors; comparable actions were taken for Signature Bank. These interventions sought to bolster confidence in the American banking system and avert potential bank runs.

On March 21, speaking at an American Bankers Association (ABA) conference, Yellen defended regulators’ prompt responses aimed at preventing a wider banking crisis and pledged robust Biden administration support for banks of all sizes. She clarified that these interventions were intended to safeguard the overall banking infrastructure rather than individual institutions and indicated that similar steps might be necessary if smaller banks faced deposit withdrawals threatening systemic contagion.

The next day, during testimony before the Senate Appropriations Subcommittee, Yellen explained that the FDIC was not contemplating “blanket insurance or guarantees of deposits.” Protection for uninsured deposits exceeding $250,000 would be granted only if a failed bank posed systemic risk, with such determinations made on a case-by-case basis by regulators.

On April 21, Yellen announced a proposal from the Financial Stability Oversight Council (FSOC) aimed at updating procedures for designating nonbank financial companies as systemically important financial institutions subject to Federal Reserve supervision. This represented a reversal of 2019 guidelines introduced during the Trump administration, which she criticized for creating excessive barriers that delayed timely responses to emerging risks. The revised framework incorporates both quantitative and qualitative evaluations to assess threats to U.S. financial stability and facilitates increased interaction between regulators and firms.

On May 18, during a meeting convened by the Bank Policy Institute (BPI) with over two dozen bank CEOs focused on economic conditions, sources reported by CNN Business indicated that Yellen suggested further consolidation through bank mergers might be necessary to address challenges facing the industry.

Economic strategy toward China

In a speech delivered on April 20, 2023, at the Johns Hopkins University School of Advanced International Studies, Yellen identified three primary goals guiding the Biden administration’s economic policy concerning China: safeguarding American national security and human rights; fostering equitable economic competition grounded in international regulations; and cooperating on global issues such as debt relief for developing nations and climate change mitigation. While underscoring the primacy of national security, her remarks indicated a move away from confrontation toward renewed engagement with Beijing. Yellen conveyed her plans to visit China shortly to revive pragmatic economic dialogue, although the outcome remained uncertain.

Between July 6 and 9, Yellen undertook the first visit by a U.S. Treasury secretary to China in four years. During informal discussions with former Vice Premier Liu He and People's Bank of China governor Yi Gang, she explored both domestic and international economic situations with the goal of reopening communication channels and pinpointing mutual interests. Subsequently, she met with China’s current economic leadership—including Premier Li Qiang, Vice Premier He Lifeng, Finance Minister Liu Kun, and CCP central bank head Pan Gongsheng—emphasizing that U.S. national security measures restricting Chinese investment were narrowly targeted and not designed to broadly disrupt China’s economy. Yellen also criticized China’s treatment of foreign enterprises, especially American companies, advocating for fair competition governed by transparent rules that benefit both nations.

This visit formed part of the Biden administration’s broader effort to restore high-level dialogue with China’s new economic officials. At a press briefing concluding her four-day stay in Beijing, Yellen described her mission as an attempt to rejuvenate engagement between the world’s two largest economies and place U.S.-China relations on a more stable foundation.

In an October interview with Sky News, Yellen outlined the core principles shaping U.S.-China relations: prioritizing U.S. national security and human rights; avoiding economic decoupling; and working collaboratively on global challenges such as climate change and debt relief.

Remarks on Israel

Addressing the economic repercussions of Israel’s conflict in Gaza, Yellen told Sky News in October 2023 that it was premature to determine any major effects, stressing that an escalation beyond Israel and Gaza would be highly undesirable.

She affirmed that the United States is capable of financially supporting military operations in both Israel and Ukraine, asserting that America can back Israel while also aiding Ukraine’s defense against Russia. Additionally, Yellen cautioned Iran that sanctions would remain fully enforceable if Tehran were found connected to Hamas-led attacks on Israel.

Economic philosophy

Yellen is commonly regarded as a "dove" regarding monetary policy, placing greater emphasis on reducing unemployment than curbing inflation and generally advocating for lower Federal Reserve interest rates. She championed stronger financial regulation aimed at minimizing systemic risks within the financial sector. Among Federal Reserve leaders, she is considered one of the most progressive since Marriner S. Eccles, who served during the Great Depression. On matters of fiscal policy, Yellen has been characterized as somewhat of a deficit hawk, expressing concerns about the national debt prior to the onset of the COVID-19 recession. In 2018, she remarked, "If I had a magic wand, I would raise taxes and cut retirement spending," later advocating for increased revenue alongside reforms to Medicare, Medicaid, and Social Security to manage expenditures effectively. In September 2021, she endorsed efforts to eliminate the debt ceiling, labeling it "very destructive" and an unnecessary risk to economic stability.

In January 2019, Yellen was among 45 initial signatories of the Economists' Statement on Carbon Dividends, promoting a carbon dividends approach within U.S. climate policy. As co-chair with Mark Carney of the Group of Thirty’s Working Group on Climate Change and Finance in October 2020, she contributed to a report urging governments, corporations, and financial institutions to evaluate climate risks and support gradual carbon pricing mechanisms aimed at accelerating progress toward a net-zero economy.

A dedicated Keynesian scholar, Yellen has been described as "Keynesian through and through." In 1999, she emphasized that while markets and incentives are important tools, government intervention is necessary when markets fail. During the 2008 financial crisis, she warned against withdrawing stimulus measures prematurely and affirmed the government's responsibility in addressing poverty and inequality. Upon her appointment as treasury secretary, Wall Street perceived her as an advocate for expansionary policies designed to stimulate growth, profits, and stock valuations, although legislative gridlock was expected to limit her influence over fiscal initiatives.

Honors and awards

Throughout her distinguished academic and political journey, Yellen has been honored with a wide array of accolades, including:

Academic

Chancellorships, fellowships, and leadership roles
Location	Period	Institution	Role
New York	1986–1987	John Simon Guggenheim Memorial Foundation	Guggenheim Fellow
Connecticut	2000–2006	Yale Corporation	Alumni Fellow
California	2003–2004	Western Economic Association International	President
Tennessee	2004–2005	American Economic Association	Vice President (alongside Angus Deaton)
California	2013–present	University of California, Berkeley	Berkeley Fellow
Tennessee	2020–2021	American Economic Association	President

Honorary doctorates awarded
Location	Date	Institution	Degree	Delivered Commencement Speech
Rhode Island	May 25, 1998	Brown University	Doctor of Laws (LL.D.)	Yes
New York	May 27, 2000	Bard College	Doctor of Humane Letters (DHL)	No
New York	May 21, 2014	New York University	Doctor of Commercial Science (DCS)	Yes
England	May 15, 2015	London School of Economics	Doctor of Science (DSc)	No
Connecticut	May 15, 2015	Yale University	Doctor of Social Science (DSSc)	No
England	November 19, 2015	University of Warwick	Doctor of Laws (LL.D.)	No
Maryland	December 19, 2016	University of Baltimore	Doctor of Laws (LL.D.)	Yes
Israel	June 5, 2019	Tel Aviv University	Doctor of Philosophy (Ph.D.)	No
Michigan	December 15, 2019	University of Michigan	Doctor of Laws (LL.D.)	No
Pennsylvania	May 17, 2021	University of Pennsylvania	Doctor of Laws (LL.D.)	No
Germany	May 21, 2024	Frankfurt School of Finance & Management	Doctor of Economics (Dr. rer. pol. h. c.)	No

Memberships and fellowships

Location	Period	Organization	Role or Title
Massachusetts	1999–2010	National Bureau of Economic Research	Research Associate in Monetary Economics
Massachusetts	2001–present	American Academy of Arts and Sciences	Member
New York	2002–2010	Economists for Peace and Security	Trustee
New York	2005–present	Council on Foreign Relations	Member
District of Columbia	2009–present	Group of Thirty	Senior Member
Tennessee	2012–present	American Economic Association	Distinguished Fellow
Connecticut	2014–present	Econometric Society	Fellow
District of Columbia	2010–present	National Association for Business Economics	NABE Fellow
England	2016–present	British Academy	' Honorary Fellow'

Awards

|' District of Columbia' |' March 30, 2023' |' National Association for Business Economics' |' Paul A. Volcker Lifetime Achievement Award for Economic Policy' }

Additional Honors

In March 2018, Charles D. Ellis established The Janet L. Yellen Chair at the Yale School of Management, bearing her name. Professor Andrew Metrick was appointed as the first holder of the Janet L. Yellen Professorship in Finance and Management.
The Federal Reserve Board inaugurated the annual Janet L. Yellen Award for Excellence in Community Development in December 2018 to recognize former chair Yellen's dedication to public service. Ariel Cisneros from the Federal Reserve Bank of Kansas City was honored as the initial awardee.
Yellen was recognized by Time magazine as one of the 100 most influential individuals worldwide on four occasions: 2014, 2015, 2017, and 2023. She was also a finalist for Time Person of the Year in 2022.
She has frequently featured on Forbes magazine’s list of the world’s 100 most powerful women, achieving second place in 2014. Furthermore, she ranked sixth among Forbes’ list of the world’s most powerful people in both 2014 and 2016.

Personal Background

Yellen is married to George Akerlof, a Nobel laureate economist who serves as a professor at the McCourt School of Public Policy at Georgetown University and holds the title Koshland Professor Emeritus at University of California, Berkeley. Their relationship began in 1977; they became engaged that December and married in June 1978. Their son, Robert Akerlof (born 1981), is an economist who graduated summa cum laude from Yale and earned his Ph.D. at Harvard. He currently holds an associate professorship in economics at the University of Warwick.

Together, Yellen and Akerlof have co-authored research on topics such as poverty, unemployment, and the economic consequences of children born outside marriage. One influential study analyzed why reductions in wages can sometimes lead to decreased employment, drawing inspiration from their own experience employing a nanny. Yellen regards Akerlof as her foremost intellectual mentor; their primary scholarly difference lies in her somewhat stronger endorsement of free trade policies.

With an estimated net worth around $20 million derived from stock investments, speaking fees, and roles in government and academia, Yellen sold off her equity holdings—including shares in Pfizer, ConocoPhillips, and AT&T—upon assuming the position of U.S. Treasury Secretary.

She inherited a collection of postage stamps valued between $15,000 and $50,000 from her mother but does not actively pursue stamp collecting herself.

Cultural References

The song "Who's Yellen Now?" was created by Dessa, a member of the indie hip-hop collective Doomtree and contributor to The Hamilton Mixtape. The track was commissioned by Marketplace following then-President-elect Biden’s announcement of his intent to nominate Yellen as the first female Treasury Secretary, accompanied by a humorous suggestion that Lin-Manuel Miranda compose a Hamilton-style musical about her. Moreover, The Late Show with Stephen Colbert debuted a parody version of Hamilton’s opening number centered on Yellen.

On NBC's program Saturday Night Live (SNL), cast member Kate McKinnon portrayed Yellen in a comedic sketch aired in 2021.

Books

Efficiency Wage Models of the Labor Market (1986), Cambridge University Press, co-edited alongside George A. Akerlof.
The Fabulous Decade: Macroeconomic Lessons from the 1990s (2001), written in collaboration with Alan S. Blinder.

Articles

"Commodity Bundling and the Burden of Monopoly," published in The Quarterly Journal of Economics, August 1976.
"A Near-Rational Model of the Business Cycle, with Wage and Price Inertia," The Quarterly Journal of Economics, January 1985, co-written with George A. Akerlof.
"The Fair Wage-Effort Hypothesis and Unemployment," featured in The Quarterly Journal of Economics, May 1990, co-authored with George A. Akerlof.

Location	Date	Organization	Award Title
Connecticut	May 26, 1997	Yale Graduate School of Arts and Sciences	Wilbur Cross Medal
District of Columbia	October 11, 2010	National Association for Business Economics	Adam Smith Award
New York	January 22, 2015	Hobart and William Smith Colleges	Elizabeth Blackwell Award
Massachusetts	May 27, 2016	Radcliffe Institute for Advanced Study	Radcliffe Medal
Rhode Island	May 5, 2017	Brown University	The President's Medal
Illinois	November 7, 2017	Institute of Government and Public Affairs	The Paul H. Douglas Award for Ethics in Government (shared with Ben Bernanke)
California	February 2, 2019	University of California, Santa Cruz	The Foundation Medal
Connecticut	March 20, 2019	Chief Executive Leadership Institute	Legend in Leadership Award
Massachusetts	September 21, 2019	Brandeis International Business School	Dean's Medal
Missouri	October 10, 2019 \|' Truman Library Institute' \|' Truman Medal for Economic Policy'