Federal Reserve Chair Janet Yellen Is Paid Less Than Fellow Staffers, Addresses 'Widening' Income and Wealth Inequality

Federal Reserve Chairperson Janet Yellen's salary is less than 113 staffers within the same agency she administers.

In details provided to Reuters through the Freedom of Information Act, the average pay for the top 113 workers at the Federal Reserve's Washington, D.C. headquarters was $246,506 per year, without bonuses and other benefits. Yellen, however, has a salary of $201,700. Her pay, which is set by Congress, is more than the normal top government rate of $130,810. The average salary of a Federal Reserve staffer is $121,279.

Details of Yellen's pay come as she addressed income inequality at the Conference on Economic Opportunity and Inequality in Boston.

"The distribution of income and wealth in the United States has been widening more or less steadily for several decades, to a greater extent than in most advanced countries," said Yellen in her opening remarks. She noted the trend, however, "paused" during the Great Recession due to economic losses. With the economy improving, the income inequality resumed, according to the Federal Reserve chair.

"The extent of and continuing increase in inequality in the United States greatly concern me. The past several decades have seen the most sustained rise in inequality since the 19th century after more than 40 years of narrowing inequality following the Great Depression," Yellen added.

Yellen said some estimates showed income and wealth inequality are near its highest levels "in the past hundred years." She acknowledged the inequality could be inevitable despite "completely equal" opportunities but different "effort, skill and luck" provide various outcomes.

Yellen identified four sources of economic opportunity in the U.S. The four sources are resources available for children, affordable higher education, business ownership and inheritances.

"In focusing on these four building blocks, I do not mean to suggest that they account for all economic opportunity, but I do believe they are all significant sources of opportunity for individuals and their families to improve their economic circumstances," said Yellen, noting the latter two sources as are usually concentrated within households at the top of the distribution.

The Federal Reserve chair's speech continued on examples of the widening income and wealth inequality and its roles in the housing market, mortgages, education and other consumer finances. She noted research about the inequality's causes and implications are still ongoing and hopes further research would help answer important questions on the issue.