Fed Chair Janet Yellen at Jackson Hole: U.S. banks are safer

Fed Chair Janet Yellen says regulation and reforms in place have made the U.S. financial system a safer place.

“Reforms have boosted the resilience of the financial system. Banks are safer. The risk of runs owing to maturity transformation is reduced. Efforts to enhance the resolvability of systemic firms have promoted market discipline and reduced the problem of too-big-to-fail. And a system is in place to more effectively monitor and address risks that arise outside the regulatory perimeter,” said Yellen in prepared remarks from a speech titled "Fostering a Dynamic Global Recovery”.

Yellen is delivering her speech in Jackson Hole Wyoming at the annual Federal Reserve Bank of Kansas City Economic Symposium.

U.S. stocks rallied on the Fed Chair's positive view of the U.S. financial system.

Investors will also hear from European Central Bank President Mario Draghi.