focus on the concerns of low - and moderate - income populations. ” www. federalreserve. gov / aboutthefed / cac. htm. 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. janet l. yellen served as a member of the board of governors from august 12, 1994, to february 17, 1997 ; president and ceo of the federal reserve bank of san francisco from 2004 to 2010 ; vice chair of the board of governors from october 4, 2010, to february 3, 2014 ; and chair and executive officer of the board of governors from february 3, 2014, through february 3, 2018 ( www. federalreservehistory. org / people / janet _ l _ yellen ).

not appear to be causing the increase in longer - term rates. business and household borrowings valuation pressures are especially concerning if they are associated with excessive borrowing. if households or businesses borrow too much, they may be unable to service debt or could find themselves underwater if assets decline in value. such stresses can propagate through the financial system, causing funding shortages that curtail credit and hamper economic activity. of course, it ’ s very difficult to tell in real time whether households and businesses are, in fact, borrowing “ too much, ” so we rely on a range of benchmarks. currently, business debt is at historically high levels relative to such benchmarks as gross domestic product ( gdp ) or business assets, although those ratios are significantly lower than the record highs reached at the onset of the pandemic. however, measures of the ability of firms to service their debt remain strong overall, supported by - 5resilient corporate profits and limited effects to date from higher interest rates. the passthrough of higher interest rates into debt - servicing costs appears to be muted by the large share of long - term, fixed - rate liabilities. however, i note that for risky borrowers or those with high - yield or unrated debt, the ability to service their debt burdens has started to show signs of weakness, as would be expected in a rising interest rate environment, and could become further strained if corporate earnings fall due to a sharper - thanexpected slowdown in economic activity. the household sector, taken as a whole, looks quite resilient. household debt, including home mortgages, auto and student loans, and credit cards, remains at modest levels relative to gdp, and most of that debt is owed by households with strong credit histories or considerable home equity. of course, we are seeing emerging signs of stress for households with lower credit scores, and individual borrowers may struggle with debt burdens in the face of economic hardships. financial - sector leverage now to financial - sector leverage. as i mentioned earlier, we pay careful attention to our financial system ’ s ability to support the activities of businesses and households. when financial institutions are overly indebted, adverse shocks can cause them to retrench more than they otherwise would, resulting in greater declines in economic activity. in extreme circumstances, such effects can lead to credit crunches and widespread economic dislocations. similarly, some institutions may be forced to rapidly deleverage, stressing