For release on delivery
6:00 p.m. EST
December 3, 2018
Celebrating Excellence in Community Development
Remarks by
Lael Brainard
Member
Board of Governors of the Federal Reserve System
at
Inaugural Janet L. Yellen Award for Excellence in Community Development
Washington, D.C.
December 3, 2018
Thank you, Chairman Powell. It is my honor to introduce Chair Yellen.1
When I first arrived at the Board, Chair Yellen offered me the opportunity to lead the
Committee on Consumer and Community Affairs--even though I had little experience in this
area. I greatly appreciate the opportunity she gave me. After visits to 16 communities across the
country--both rural and urban--I can attest to the richness of our community development work.
It helps us see the economy as it is experienced by Americans in their communities. It provides
a valuable perspective on our monetary policy goals by putting names and faces on the aggregate
unemployment statistics. It helps us spot problems in consumer credit in overstretched
communities well before they show up in national statistics. And it is essential in helping our
banks meet their affirmative obligations to the low- and moderate-income communities they
serve and to understand what is likely to be most effective in lifting up the lives of people in
challenged communities.
Janet Yellen's experience as president of the Federal Reserve Bank of San Francisco
during some of the most challenging economic times for our country no doubt shaped her
commitment to the Federal Reserve's community development work.2 One associate from the
San Francisco Federal Reserve Bank recounts a meeting at the height of the crisis when staff
suggested their exhausted boss should take a break from the round-the-clock emergency
meetings. Then-President Yellen stated that she had an obligation to continue working until such
time that families were no longer losing their homes, their livelihoods, and their pensions.
- 2 -
That moment encapsulates Chair Yellen's consistent orientation to how our work touches
the lives of American families. It is perhaps no accident that Chair Yellen delivered her first
speech as Chair at a community reinvestment conference.3
In navigating the Federal Open Market Committee's objectives of price stability and full
employment, Chair Yellen was attentive to low- and moderate-income communities, recognizing
that Americans on the most precarious rungs of the ladder often feel the impacts of a downturn
soonest and the longest.4 Chair Yellen brought the subject of economic disparities to the
forefront of our conversations, consistently emphasizing the importance of an economy that
works for everyone.5
As Chair, Janet Yellen continued her practice of meeting with community members,
where she had in-depth conversations about disparities in employment, labor force participation,
income, and wealth, recognizing these direct interactions provide valuable insights no statistic or
report can fully capture. For instance, she visited the Manufacturing Technology Center on
Cuyahoga Community College's Metropolitan Campus where she participated in a roundtable
discussion on the state of manufacturing workforce development in Northeast Ohio.6
3
Janet L. Yellen, "What the Federal Reserve Is Doing to Promote a Stronger Job Market" (speech at the 2014
National Interagency Community Reinvestment Conference, Chicago, Illinois, March 31, 2014),
www.federalreserve.gov/newsevents/speech/yellen20140331a.htm.
4
"Differences in unemployment rates across racial and ethnic groups tend to widen sharply during recessions, as
less advantaged groups shoulder an outsized share of total layoffs, and these differences shrink during recoveries.
For example, in the second quarter of 2017, the unemployment rate for black adult men was a little more than 3
percentage points higher than for white adult men. This differential, while sizable, is nonetheless close to the
smallest gap seen since comparable data became available in the mid-1970s." Lael Brainard, "Why Persistent
Employment Disparities Matter for the Economy's Health" (speech at "Disparities in the Labor Market: What Are
We Missing?" a research conference sponsored by the Board of Governors of the Federal Reserve System,
Washington, D.C., September 26, 2017), www.federalreserve.gov/newsevents/speech/brainard20170926a.htm.
5
Janet L. Yellen, Opening Remarks (speech at the "Economic Mobility: Research and Ideas on Strengthening
Families, Communities, and the Economy," a community development research conference sponsored by the
Federal Reserve System, Washington, D.C., April 2, 2017),
www.federalreserve.gov/newsevents/speech/yellen20150402a.htm.
6
Janet L. Yellen, "Inflation, Uncertainty, and Monetary Policy" (speech at the "Prospects for Growth: Reassessing
the Fundamentals" 59th Annual Meeting of the National Association for Business Economics, Cleveland, Ohio,
September 26, 2017), www.federalreserve.gov/newsevents/speech/yellen20170926a.htm.
We are committed to continuing Chair Yellen's legacy. In our service to the American
people, we recognize that our monetary policy, financial stability, and supervisory activities have
an important influence on the financial health of Americans in communities across the country.
Promoting community development is one of the key purposes and functions of the Federal
Reserve, and we have a responsibility to ensure that consumer and community perspectives
inform Federal Reserve policy, research, and actions, including vulnerable communities.7
In his inaugural remarks as Chairman, Jay Powell underscored that it is our duty at the
Federal Reserve to "approach every issue through a rigorous evaluation of the facts, theory,
empirical analysis, and relevant research."8 That lens informs our community development
responsibilities: we seek to learn from the experience of manufacturing workers, homeowners,
community bankers, nonprofit executives, community organizers, and small business owners to
help inform our policymaking.9
Under Chair Yellen's leadership, the Board of Governors established a Community
Advisory Council (CAC) to help provide regular insights into the conditions facing low- and
moderate-income communities.10 Recently, CAC members provided informative public
comments to the Board on the Community Reinvestment Act and current market conditions
within low- and moderate-income communities.11
7
See the 10th edition of the Federal Reserve System Purposes & Functions at
www.federalreserve.gov/aboutthefed/files/pf_7.pdf.
8
See Jerome H. Powell, Remarks (speech at the Ceremonial Swearing-in at the Federal Reserve Board, Washington,
D.C., February 13, 2018, www.federalreserve.gov/newsevents/speech/powell20180213a.htm.
9
For examples of the Federal Reserve's analysis of community and household economic issues, see the Survey of
Household Economics and Decisionmaking, Small Business Credit Survey, and Investing in America's Workforce.
10
"The Community Advisory Council (CAC) was formed by the Federal Reserve Board in 2015 to offer diverse
perspectives on the economic circumstances and financial services needs of consumers and communities, with a
particular focus on the concerns of low- and moderate-income populations."
www.federalreserve.gov/aboutthefed/cac.htm.
11
Lael Brainard, "Community Investment in Denver" (speech at the Federal Reserve Bank of Kansas City, Denver
Branch, Denver, Colorado, October 15, 2018),
www.federalreserve.gov/newsevents/speech/brainard20181015a.htm.
Under Chair Powell's leadership, Eric Belsky, Anna Boyd, Federal Reserve Bank of
Cleveland President Loretta Mester--who chairs the Committee on Research, Public Information,
and Community Affairs for Reserve Bank presidents--and community development staff across
the System are continuing to advance this agenda. Over the past year, all 12 Reserve Banks have
adopted a common community development strategic plan that seeks to advance the economic
resilience and mobility of low- and moderate-income households and communities and to
enhance public awareness of these issues.
During Chair Yellen's 16 years as a public servant in the Federal Reserve, her words,
actions, and research demonstrated a deep commitment to striving for an inclusive economy and
recognizing the challenges faced by underserved communities.12 From her speeches to her
policy deliberations, Janet made clear that her duty was to serve Main Street and all Americans.
The Award for Excellence in Community Development that we are establishing tonight
memorializes Janet Yellen's commitment to the people and places that make up our vibrant
economy, including those who face challenges. Going forward, we will look to celebrate staff
within the System like Ariel Cisneros--the first to receive this award in Janet Yellen's name--
thus honoring those who innovate, trailblaze, and embody the same deep-seated commitment to
low- and moderate-income communities that Janet Yellen espouses. With that, it is my great
pleasure to introduce Chair Janet Yellen.