In November 2006, while president of the San Francisco Fed, Yellen tackled the subject in a speech entitled “Economic Inequality in the United States” to the Center for the Study of Democracy at the University of California, Irvine. She readily admitted that income inequality is not part of the Fed’s “dual mandate” to foster stable prices and promote maximum employment. “Nonetheless, this has been an interest of mine for a long time,” she said. Yellen then identified the main culprit for growing income gaps in the United States over the past several decades: globalization.

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