Janet Yellen

Yellen: Banks play vital economic role in poor communities

Federal Reserve Chair Janet Yellen said Tuesday that U.S. banks must do all they can to promote economic development in low-income areas where high unemployment has persisted despite the overall job market's significant gains.

Yellen told community development groups that banks are needed not just to provide home mortgages in low- and moderate-income neighborhoods but also to support educational opportunities and to bolster the development of small businesses.

Yellen noted that this is the 40th anniversary of the Community Reinvestment Act, which requires banks to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods. She...

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