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Yellen Calls Widening Racial Wealth Gap ‘Extremely Disturbing’

  • Day two of hearings dominated by hot-button political issues
  • Fed report to Congress included study of recovery by ethnicity
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Yellen: Widening Racial Wealth Gap 'Extremely Disturbing'

Federal Reserve Chair Janet Yellen called widening wealth disparity between races in the U.S. “extremely disturbing,” and warned that it could reshape consumption patterns in the future.

On the eve of the U.K.’s vote on whether to leave the European Union, the questions Wednesday from the House Financial Services Committee to the Fed chair were largely domestic and political, ranging from income inequality to burdensome bank regulation. Committee Chairman Jeb Hensarling, a Texas Republican, opened the hearing asking about the Fed’s legal authority to pay interest on excess reserves.