WASHINGTON–Federal Reserve Chairman Janet Yellen said in remarks that she believes U.S. banks are “very much stronger” and that another financial crisis isn’t likely in the near future.
Speaking in London with British Academy President Lord Nicholas Stern, Yellen said the Fed has learned lessons from the financial crisis and has brought stability to the banking system, according to CNBC.
"I think the public can see the capital positions of the major banks are very much stronger this year," Yellen was quoted as saying. "All of the firms passed the quantitative parts of the stress tests."
And although there have been reports of worries over another economic bubble bursting, Yellen predicted that another financial crisis like the one that exploded in 2008 was not likely "in our lifetime."
According to Yellen, the Fed learned lessons from the financial crisis and is now being more vigilant to find risks to the system.
"I think the system is much safer and much sounder," CNBC quoted Yellen as saying. "We are doing a lot more to try to look for financial stability risks that may not be immediately apparent but to look in corners of the financial system that are not subject to regulation, outside those areas in order to try to detect threats to financial stability that may be emerging."