Increase in inequality in the US is a great concern, says Fed's Yellen

Income and wealth inequality in the US are at the highest levels in the past hundred years, Federal Reserve Chair Janet Yellen said on Friday.

Speaking at the Conference on Economic Opportunity and Inequality in Boston, Yellen expressed her worries over the widening gap of inequity in the US.

She urged for tackling issues such as encouraging entrepreneurship to help narrow the gap.

“The extent of and continuing increase in inequality in the United States greatly concern me,” said said.

Yellen said steady growth in inequality over the past several decades represents the most sustained rise since the 19th century.

Living standards for most families have been falling or stagnant but those at the top have enjoyed wealth and income gains, she added.

In the light of the speech, was a report from Reuters that showed Yellen earns less than 113 others at the Federal Reserve’s Washington headquarters.

Yellen earns $201,700 a year compared to an average earnings of $246,506 per year by 113 at the Fed, not counting bonuses and other benefits.