Former Fed Chief Janet Yellen Holds Meeting with Investment Bank

Former Federal Reserve Chair of the Board Janet Yellen paid a visit to Wall Street two months after stepping down and discussed the economy and interest rates. The event was hosted by investment bank Jefferies that included a sit-down dinner.

Yellen had run the US Federal Reserve for four years until this year in February. In an interview, Yellen said she disclosed no confidential information during the gathering arranged by Richard Handler, Jefferies CEO.

“I talked about the economy and general perspectives on monetary policy,” said Yellen. She also said that she was paid but did not mention how much. She also didn’t provide any further details.

A question-and-answer session has taken place in the gathering with more than 100 Jefferies clients. According to a source familiar with the matter, Yellen stayed close to the gradual interest rate hike that Jerome Powell, Yellen’s successor, has already announced.

Afterward, Yellen talked to executives from hedge funds, private equity firms, and other companies. She said that inflation should be kept in check and will unlikely spike so rates would still stay relatively low, according to the person familiar with the matter.

Investors are always eager to gain insights, so cashing in after years in public service is quite common for regulators, policymakers, and other such people. Former Fed leaders tend to do so.

In a separate forum for Jefferies clients, Yellen stated her opinion that three or four rates were probably going to happen this year. She also said that the recent tax cuts and boosts in government spending posed some risk of running the economy hot.

David Zervos, who is the Jefferies Group LLC chief strategist, was the one who conducted the forum. He later tweeted a link to a photograph of him with Yellen on Instagram.

“An amazing evening last night hosting Janet Yellen for our clients in NY,” tweeted Zervos.

Last month, the Fed raised interest rates at the first meeting under Jerome Powell. The forecasts indicated that policymakers were divided between three or four total hikes this year, with economic growth and inflation both rising.

Meanwhile, Yellen joined the Brookings Institution right after stepping down the Fed chair. She spoke in public at the think tank about the economy. Last month, she discussed her Fed tenure at the University of Pennsylvania.

During the past few months, Yellen was listed as speaker-for-hire by the Washington Speakers Bureau.

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