Yellen, in a CNBC interview, also said that while banks may struggle with commercial real estate and face some consolidation, there is ample liquidity in the system and banks should generally be able to withstand any strain.
She said the economy has slowed somewhat, easing pressures in the labor market, but "we still have a very healthy labor market, wage gains are significant." "Consumer spending has continued to grow in a pretty robust way, but you're also seeing areas of the economy that are slowing down," Yellen said. "And this is a judgment that my former colleagues at the Fed are very capable of making. As I said, I think what's important is to try to bring inflation down. That's a top priority.
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