Yellen: U.S. Financial System Is 'Safer and Sounder' Than Before Crisis

By Paul Hannon and David Harrison Features Dow Jones Newswires

The U.S. financial system is "safer and sounder" than it was before 2008, although another crisis can't be ruled out, Federal Reserve Chairwoman Janet Yellen said Tuesday.

Continue Reading Below

Speaking at the British Academy, Ms. Yellen said the Fed is spending more time on detecting threats to financial stability, including in places that aren't subject to regulation.

"We have been very focused on making sure the core of our financial system has enough capital that we can provide the assurance that our major banks could go on lending to our economy even after a major shock, " she said. "The system is much safer and sounder."

Ms. Yellen also cited improvements to the "architecture" of the system, including central clearing for an increased range of derivatives contracts.

But she said another crisis can't be excluded, although she hoped "it will not be in our lifetime."

Write to Paul Hannon at paul.hannon@wsj.com and David Harrison at david.harrison@wsj.com

Continue Reading Below

(END) Dow Jones Newswires

June 27, 2017 14:08 ET (18:08 GMT)