Speaking during a Q&A event in London, Yellen highlighted positive results from the Fed's recent "stress test" reviews of America's big banks, and said she doesn't believe another financial crisis will occur "in our lifetimes."
"Would I say there will never, ever be another financial crisis? ... Probably that would be going too far. But I do think we're much safer, and I hope that it will not be in our lifetimes, and I don't believe it will be," Yellen said.
As part of her reasoning, Yellen said officials "are doing a lot more to try to look for financial stability risks that may not be immediately apparent … in order to try to detect threats to financial stability that may be emerging."
She also indicated the country has "a more appropriate system of supervision and regulation" and "hopefully [will] for a good, long time."
The Fed's periodic stress tests were introduced under the post-recession Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. They were designed to keep the country's largest financial institutions in check, although opponents on the right have argued some of the Fed's additional oversight granted by the legislation have unnecessarily hamstrung the private sector.
As a result of the tests, Yellen said, the country’s banking system is “very much stronger” and “safer and sounder” than it was not long ago.
