This is the response that Yellen gives a senator when asked if the Fed is too worried about the stock market.
"I would push back against the notion that we are unduly affected by the ups and downs of the stock market, we are certainly very focused on the fundamentals and economic statistics that describe where the economy is in terms of the labor market and inflation which are the two goals assigned to us by Congress and a lot of different kinds of economic information go into the forecasts that drive our decision-making, forecasts about where the labor market and inflation will be moving but financial conditions broadly, and I am not talking about the stock market here uniquely, but a wide range of financial variables that I would say go into assessing financial conditions, the ease of households and businesses of borrowing that affect their spending patterns whether it's consumer spending or investment or our competitive position in the global economy that affects our ability to expert, the competitiveness of import-competing goods, the state of financial conditions broadly speaking is one variable that does affect our forecast of the economy so we can't completely ignore what is happening in the markets to housing prices, to equity prices, to longer term interest rates, to credit spreads that influence borrowing costs, to the exchange rate that affects the competitiveness of US goods and services, all those factors feed into financial conditions and are relevant to forecasting the economy so it is one element of our evaluation, but I don't think we pay undo attention to it and I don't think we should."
Or, stated briefer, a 251-word statement stating just the opposite of what happens in the real world [5].
