Yellen has a reputation for calling the recession ahead of her peers – one that is borne out in the Fed’s documents. In a January 21 meeting she said “the risk of a severe recession and credit crisis is unacceptably high, and it is being clearly priced now into not only domestic but also global markets.”
On September 16, the day after Lehman Brothers filed for bankruptcy, Yellen showed her lighter side as she gave evidence of an economic slowdown in San Francisco. “East Bay plastic surgeons and dentists note that patients are deferring elective procedures,” she said to laughter.
“Reservations are no longer necessary at many high-end restaurants. And the Silicon Valley country club, with a $250,000 entrance fee and seven- to eight-year waiting list, has seen the number of would-be new members shrink to a mere 13,” she said.
“Sales of cheap wine are soaring,” Yellen reported to the Fed on March 8, a week before Bear Stearns collapsed.