Tags: federal reserve | janet yellen piggy banks | financial crisis

Here's the Ultra-Grim Way Janet Yellen Described the Economy in March 2009

Wednesday, 04 March 2015 11:18 AM

The Federal Reserve just released the transcripts from its Open Market Committee meetings from 2009 — some of the darkest times of the financial crisis. Fed watchers are pouring over them now to get a picture of what was going through the minds of the Fed presidents as the drama unfolded.

In March 2009, right at the bottom, Janet Yellen, painted a pretty desperate picture of what people were going through.

She even suggested people were smashing open their piggy banks:

Thank you, Mr. Chairman. The economic and financial news has been grim. Things are now so bad that I actually open the Greenbook with greater trepidation than my 401(k). [Laughter] The awful employment and spending data have not been much of a surprise, but they do dispel remaining hopes that we might see a turnaround any time soon. This conclusion is reinforced by what I’m hearing from my business contacts. Their already sour mood is taking another sharp turn for the worse. One director reported that businesses were so shaken that it would take a sustained period of positive data, on the order of six to nine months, before they would begin to consider expanding production and employment. Another disturbing sign of how tough things are getting is that people appear to be breaking into their piggybanks to make ends meet—the Cash Product Office reports huge increases in the amount of coins being brought into our inventory. [Laughter] The December inventories of quarters and dollar coins were up more than 50 percent from 2007, and even pennies were up nearly 25 percent.

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Yellen in 2009: People 'Breaking Into Their Piggybanks' Amid Crisis
federal reserve, janet yellen piggy banks, financial crisis
Wednesday, 04 March 2015 11:18 AM
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