“Firms don't just try to pay as little as possible to get the needed bodies on board; when there is unemployment, they ask themselves how wage cuts would affect the behavior of the employees. Would they quit or feel dissatisfied and work less hard on the firm's behalf if they feel that wage policies are unfair?”

American economist

Janet Yellen is an American economist and public official, known for serving as the 78th United States secretary of the treasury from 2021 to 2025 and as the 15th chair of the Federal Reserve from 2014 to 2018. She was the first woman to hold either post. She has also led the White House Council of Economic Advisers. Yellen is professor emeritus at the University of California, Berkeley, where she joined the faculty in 1980 and held the Eugene E. and Catherine M. Trefethen professorship in business administration and economics. Her career is closely tied to economic policy, central banking, and academic economics.