Yellen, Janet

I think a major failure there was in regulation and in supervision, and not -- not just in monetary policy. So, I would say going forward, while I certainly recognize and my colleagues do that an environment of low interest rates can incent the development of bubbles, and we can't take monetary policy off table as a tool to use to address it, it's a blunt tool.
And macro-prudential policies -- many countries do things like impose limits on loan-to-value ratios, not because of safety and soundness of individual institutions, but because they see a housing bubble form and they want to protect the economy from it. We can consider tools like that, and certainly supervision and regulation should play a role and their more targeted policies.
…
Nothing is more important than avoiding another financial crisis like the one that we just lived through. So, it's immensely high priority for the Federal Reserve to do what we can to identify threats to financial stability.
One approach that we're, you know, putting in place in part through our Dodd-Frank rulemakings is simply to build a financial system that is much more resilient to shocks. The amount of capital in the largest banking organizations is doubled. We do have a safer and sounder system, and that's important.
But detecting threats to financial stability, we are looking for those threats. I'd say my general assessment at this point is that I -- I can't see threats to financial stability that have built to the point of flashing orange or red. We don't see a broad-based buildup, for example, in leverage or very rapid credit growth. Asset prices generally do not appear to be out of line with traditional metrics. But this is something we're looking at very, very carefully.