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Janet Yellen Speaks Out on Education and Inequality

Federal Reserve Chair Janet Yellen stepped out of her banks-and-money specialty today to point to an issue that doesn’t usually get on the radar of central bankers: school finance. In a speech lamenting inequality in America, she said “public education spending is often lower for students in lower-income households than for students in higher-income households.”

And that, she said, is because poor school districts have to rely heavily on their own resources to pay for their children’s schooling. “A major reason the United States is different is that we are one of the few advanced nations that funds primary and secondary public education mainly through subnational taxation.”