Fed's Janet Yellen gives an economic short course, beyond interest rates

Economy "is doing quite well" but "there are quite serious problems" in the long term, she said

Janet L Yellen, the Federal Reserve chairwoman, was asked Thursday night what teachers should tell students to get them excited about central banking.

Tell them about fighting financial crises, Yellen responded. After all, she noted, that is the reason the Fed was created.

That exchange, at an event the Fed billed as a town-hall meeting for educators, reflected the lasting effects of the 2008 financial crisis. Before then, Fed officials rarely talked about the Fed’s fire-fighting responsibilities. Yellen said she did not talk about them either when she was a university professor.

“This critical role of central banks as a lender of last