“Where it will come from, what form it takes, how international and broad-based it will be is to be seen, and typically the crisis never comes from where we expect it,” she added.
“Our duty, and certainly the message that we give to the finance ministers, to the policymakers, is ‘be prepared’. Make sure that your financial sector is under good supervision, that it’s well regulated, that the institutions are rock-solid, and anticipate at home with enough buffers so that you can resist the potential crisis.”
Janet Yellen is to outline her Monetary Policy Report to Congress later Wednesday in a meeting which is also likely to also pose questions about the Fed’s “tapering” plans and her own future at the central bank.
