to the destabilizing effects of high foreclosure rates. i visited california's inland empire and los angeles, as well as areas in atlanta, that until recently were economically vibrant. many coastal cities – even those with jobs and growing populations – now are in distress because of high rates of foreclosure. for instance, the florida cities of cape coral, miami, orlando, tampa, and sarasota are among those with the highest rates of foreclosure – between 3. 8 and 10 percent. these areas, and others in the west, such as las vegas and phoenix, experienced very high rates of new home construction and speculative investments that resulted in unsustainable price escalation throughout the early part of this decade. 4 vacant properties are creating a different kind of problem in some california markets. indeed, as investors sense that home prices have bottomed out, they are approaching servicers with cash offers for the bulk purchase of properties. in fact, community organizations in areas of california complain that investor interest has heated up to the point that qualified first - time homebuyers and local community organizations are being crowded out of the market. foreclosure rescue scams that have taken up residence in nearly every community appear to be even more prevalent in stronger market areas where retaining title to a home is more economically feasible. one counselor in los angeles told me that as many as 80 percent of the homeowners she counseled had been victims of rescue scams. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. http : / / www. detroitagriculture. org / garden _ resource _ program. htm. mallach, alan. stabilizing communities : a federal response to the secondary impacts of the foreclosure crisis. brookings institute. february 2009. in addition to the economic dynamics of any particular city, it is clear that, even within metropolitan areas, community stabilization issues can vary from neighborhood to neighborhood. for example, cleveland's highest vacancy rates are primarily in its urban core, while in atlanta, the problem of high foreclosure rates is found not only in the urban core, but also in outer suburban communities that experienced significant growth

janet l yellen : confirmation hearing testimony by ms janet l yellen, vice chair of the board of governors of the federal reserve system, before the committee on banking, housing, and urban affairs, us senate, washington dc, 14 november 2013. * * * chairman johnson, senator crapo, and members of the committee, thank you for this opportunity to appear before you today. it has been a privilege for me to serve the federal reserve at different times and in different roles over the past 36 years, and an honor to be nominated by the president to lead the fed as chair of the board of governors. i approach this task with a clear understanding that the congress has entrusted the federal reserve with great responsibilities. its decisions affect the well - being of every american and the strength and prosperity of our nation. that prosperity depends most, of course, on the productiveness and enterprise of the american people, but the federal reserve plays a role too, promoting conditions that foster maximum employment, low and stable inflation, and a safe and sound financial system. the past six years have been challenging for our nation and difficult for many americans. we endured the worst financial crisis and deepest recession since the great depression. the effects were severe, but they could have been far worse. working together, government leaders confronted these challenges and successfully contained the crisis. under the wise and skillful leadership of chairman bernanke, the fed helped stabilize the financial system, arrest the steep fall in the economy, and restart growth. today the economy is significantly stronger and continues to improve. the private sector has created 7. 8 million jobs since the post - crisis low for employment in 2010. housing, which was at the center of the crisis, seems to have turned a corner – construction, home prices, and sales are up significantly. the auto industry has made an impressive comeback, with domestic production and sales back to near their pre - crisis levels. we have made good progress, but we have farther to go to regain the ground lost in the crisis and the recession. unemployment is down from a peak of 10 percent, but at 7. 3 percent in october, it is still too high, reflecting a labor market and economy performing far short of their potential. at the same time, inflation has been running below the federal reserve's goal of 2 percent and is expected to continue to do so for some time. for these reasons, the federal reserve is using its monetary policy tools to promote a more robust recovery. a strong recovery