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Yellen says Fed must focus on globalization

WASHINGTON — Federal Reserve Chair Janet Yellen says the growing globalization of financial markets requires the Federal Reserve to understand how economic developments in other nations may affect the U.S. economy.

Yellen says the Fed needs deeper insights into things such as global capital flows to achieve its domestic objectives of maximum employment and price stability. She says the Fed should better grasp how evolving global financial markets impact the U.S. economy and how U.S. policies can affect foreign economies.

She was speaking at the start of a two-day conference sponsored by the Fed, the European Central Bank and the Federal Reserve Bank of New York.