"Fiscal policy has been working at cross purposes to monetary policy. Some of the near-term reductions in spending that we have seen have certainly detracted from the momentum of the economy and from demand, making it harder for the Fed to get the economy moving, making our task more difficult."
"We are worried about a fragile recovery, and a more supportive fiscal policy, or one that at least had less drag, that did no harm, would make life easier," she added later.
"This is an extremely difficult and to my mind very worrisome problem," Yellen said of inequality.
