Janet Yellen: The Sixteen Trillion Dollar Woman

In her first and only interview as Fed chief, the economist says why she thinks the housing market is back on track, companies will invest, and more new jobs are on the way this year. She now has the world's largest economy in her hands

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Photograph by Peter Hapak for TIME

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After all, at the end of the day, Janet Yellen, the commander in chief of the everyday economy, will judge herself not by the views of Wall Street but by the health of Main Street. "You know, a lot of people say this [asset buying] is just helping rich people. But it's not true. Our policy is aimed at holding down long-term interest rates, which supports the recovery by encouraging spending," she says. "And part of the [economic stimulus] comes through higher house and stock prices, which causes people with homes and stocks to spend more, which causes jobs to be created throughout the economy and income to go up throughout the economy." Translation: a rising tide can lift all boats. That's a phrase that's been associated with conservatives in recent years, but it's worth remembering that Kennedy said it first--and Yellen still believes it.

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