Trailblazing economist Janet Yellen has been awarded an honorary UNSW degree for distinguished career and public service.
Secretary Janet Yellen, the former Chair of the US Federal Reserve and US Treasury Secretary, offered words of wisdom to UNSW Sydney graduates as she received the University’s highest honour this week.
“The world needs your energy, creativity and commitment. Step forward with confidence and make your impact felt.”
Secretary Yellen made the remarks during her visit to Sydney this week, where she received an honorary doctorate from UNSW in recognition of her outstanding contributions to economics, academia and public service.
Appointed by President Barack Obama as Chair of the US Federal Reserve in 2014, and later by President Joe Biden as Treasury Secretary in 2021, Secretary Yellen is the first woman to hold both roles.
At an ‘In Conversation With’ event hosted by the UNSW Business School, she joined UNSW Chancellor David Gonski AC for a thought-provoking discussion on the challenges facing the global economy.
Mr Gonski told the crowd he was both excited and had trepidations about interviewing someone who he described as “one of the best-known people in the business world”.
“She has distinguished herself as an insightful and rigorous scholar in the fields of macroeconomics and labour markets,” Mr Gonski said. “Secretary Yellen has been a leading advocate for increased labour force participation, particularly amongst women and minorities, as well as for policies aimed at reducing economic inequality.
“Her voice has consistently championed the importance of sustainable economic and equitable growth.”
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America’s recession risk
During the discussion, Secretary Yellen gave a frank assessment about the Trump administration’s economic policies. She told the audience that President Donald Trump’s tariffs, and his pledge to impose more from 2 April, could have devastating consequences for both the United States and the global economy.
“This is an extremely unwise and damaging program. It’s damaging to the United States, and it’s also damaging to our neighbours in the global economy,” she said.
“A tariff is a tax that boosts the cost of imports. It is American consumers who will pay higher prices.”
She cautioned that these policies could lead to a significant economic downturn.
“What the Trump tariffs threaten to do is to cause a recession in the United States by curtailing investment,” Secretary Yellen said.
“I think the Trump policies have created so much uncertainty for businesses. What we’re seeing if you talk to businesspeople, and we’re seeing this also in soft data from surveys, is that business uncertainty is extremely high.”
Why Janet Yellen thinks Donald Trump is 'completely wrong' on trade policy
During the conversation, Secretary Yellen criticised President Trump’s trade policies as both damaging and misguided. She pointed to the President’s opposition to other countries’ Value Added Taxes (VAT), like Australia’s Goods and Services Tax (GST), and his belief that they discriminate against American producers.
President Trump has threatened further trade sanctions from April on countries with a VAT.
“I think this is completely and totally misguided,” Secretary Yellen said. “Many countries have value added taxes. Europe relies on them heavily. Other countries have them, and they are not discriminatory.
“It is not creating a competitive disadvantage. And to think that this is like a subsidy or an unfair trade practice, I regard as completely wrong.”
How Australia should respond to America’s aggressive approach on trade
Australia has had a free trade agreement with the United States for 20 years, and enjoyed strong economic, defence and political ties for decades. That relationship is now destabilised thanks to President Trump’s “America First” policy.
However, in conversation with Mr Gonski, Secretary Yellen warned Australia against retaliating.
“Australia, I think, has benefited as many countries have, from a very open trading system,” she said.
“And as I would say, as you think about how to respond, remembering that tariffs tend to harm countries that put them in place.
“We’re seeing a lot of retaliation, which is natural, but it’s wise to remember that retaliation can also hurt your own economy.”
Receiving UNSW’s highest honour
At a UNSW Business School graduation ceremony, Secretary Yellen was awarded the degree of Doctor of Business, honoris causa, recognising her distinguished career at the highest levels of global financial governance and her commitment to fairness and social responsibility.
Secretary Yellen has played a pivotal role in advancing economic stimulus measures and international tax reform. As an academic at UC Berkeley’s Haas School of Business, she contributed influential research on labour markets and the intersection of macroeconomics and unemployment.
Her public service career spans decades, including as Chair of the Council of Economic Advisers under President Bill Clinton where she advocated for policies that balance economic growth with labour market stability.
In 2014, she became the first woman to serve as Chair of the Federal Reserve, guiding the US economy through its post-2008 financial crisis recovery. In 2021, she again made history as the 78th US Secretary of the Treasury under President Joe Biden, leading efforts to stabilise the economy in response to the COVID-19 pandemic through significant fiscal stimulus initiatives.
Former Governor of the Reserve Bank of Australia, Philip Lowe, who delivered closing remarks at the ‘In Conversation’ event, praised Secretary Yellen’s extraordinary career and character.
“We were governors of our respective central banks at roughly the same time,” he told the crowd.
“The person that I’ve seen in those various roles – as an academic, as a central bank chief and as a senior government official – is really the very same person we’ve seen in this room tonight,” Mr Lowe said.
“That’s someone who is incredibly committed to making the world a better place, who greatly cares about people, who’s compassionate, who believes in international cooperation, who is erudite and thinks deeply about issues.
“(She) really cares for people, and I would add, is incredibly humble given all the first that she’s achieved.”
When presented with her honorary degree at the UNSW Business School graduation ceremony, Secretary Yellen expressed her deep gratitude and challenged graduates to make a meaningful impact on the world.
“You graduate at a time when the world faces profound challenges, widening inequality, the ongoing threat of pandemics, rapid advances in artificial intelligence and the existential crisis of climate change,” Secretary Yellen told the audience.
“As you embark on your careers, you will be called upon not just to adapt to these changes, but to shape them in ways that promise prosperity and fairness.”
UNSW Vice-Chancellor and President Professor Attila Brungs praised Dr Yellen and her profound contributions to building a fairer and more inclusive society.
“Dr Yellen’s career has been distinguished by her unwavering commitment to fostering a more equitable society and shaping economic policy for the benefit of all,” Prof. Brungs said.
“She is one of the world’s most influential economists, policymakers and public servants, and we are honoured to host her at UNSW, and now through her Hon Doc, welcome her as a member of the UNSW community.”
Dean of UNSW Business School, Professor Frederik Anseel, echoed these sentiments, commending Secretary Yellen for her work in shaping a more just economy.
“During her various tenures, Secretary Yellen has been a role model and leading light for all of us striving to advance economic and social prosperity,” Prof. Anseel said.
“Her influence extends far beyond economic policy, impacting broader societal issues such as income inequality, climate change, and financial regulation, making her a thought leader in shaping a more just and resilient global economy.”
Secretary Yellen closed her address with an inspirational message to graduates, encouraging them to embrace their role as changemakers.
“As you embark on the next phase of your journey, remember your education at UNSW has prepared you not just to succeed, but to contribute to society,” Secretary Yellen said.
“The future awaits your contributions.”
