U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell advise caution as risks to financial stability remain evident. Yellen told the New York Times in a recent interview that large financial institutions are in a much better shape now than they were during the financial crisis. However, given the current pandemic, and recent data that suggest the actual unemployment rate is close to 10%, Yellen warns of market complacency and that policy-makers should aim to safeguard financial stability via increased supervision and regulation. Yellen and Powell believe the economy, despite the recent market boom, needs significant aid in the form of increased spending to prevent negative long-term effects.

Click here to read more.