Federal Reserve Bank head Janet Yellen on Thursday said that the economic mobility has strengthened the American economy, calling for more research work on the factors that influence it.
“Researchers and policymakers need a better understanding of how much mobility individuals may experience over the course of their lives,” Yellen said at a Federal Reserve conference on economic mobility in Washington.
Yellen called for in-depth research work on several factors responsible for influencing the economic mobility in the Unites States, ranging from how families are affecting future prosperity to how public policy can assist in offering the most opportunity.
“Research may be able to provide evidence on which public policies are most helpful in building an economy in which people is poised to get ahead,” the Federal Reserve boss said.
Yellen said that higher economic mobility as well as opportunity helps in promoting a ‘healthier economy’. According to her, innovation and entrepreneurship are major contributors to individual mobility and a stronger economy.
She believes more research work would immensely contribute in better understanding about how much mobility matters at the individual level for broader growth of economy.
Yellen, however, did not mention about the outlook for the monetary policy or the country’s economy in the text of her prepared remarks.
Her Thursday’s comments opened a two-day Fed-sponsored conference.
The gathering will include sessions on the impact of families and communities and the intergenerational economic mobility.
Among other speakers scheduled to speak are St. Louis Fed President James Bullard, Fed Governor Lael Brainard and Minneapolis Fed chief Narayana Kocherlakota.
The policy makers at America’s central bank are preparing hard to raise the rates of interest for the first time since June 2006.