Yellen says public trust in Fed ethics is critical

WASHINGTON – Federal Reserve Chair Janet Yellen says that the Fed’s effectiveness critically depends on the nation’s confidence that the central bank is acting only in the public’s interest.

Yellen says it is important for Fed officials to “demonstrate our ethical standards in ways that leave little room for doubt.”

Yellen’s remarks came at a ceremony where she and former Fed Chairman Ben Bernanke were honoured with this year’s Paul H. Douglas Award for Ethics in Government, named for the late Illinois senator. Yellen and Bernanke were recognized for their efforts to increase transparency at the historically secretive Federal Reserve.

Yellen’s comments were her first public remarks since President Donald Trump announced last week that he was by-passing her and nominating Fed board member Jerome Powell as the next Fed chairman.