Federal Reserve Vice-Chair Janet Yellen made history this afternoon as President Obama officially appointed her to replace Ben Bernanke as the Chairman. The long-awaited news was not a surprise as many felt her nomination was imminent, particularly after Lawrence Summers abruptly withdrew his name from the list of possible candidates.
Today’s news regarding the appointment marks the first time in U.S. history that a female has been selected to chair the powerful Fed (Board of Governors of the Federal Reserve System. Ever since current Chair Bernanke indicated he would not seek another term there was speculation Lawrence Summers would receive the nod. A long-time Obama supporter, he served in the initial administration. However, during the past year he came under fire and was tagged as not committed to insuring regulatory issues would receive prompt attention. It was during that time when several prominent politicians led by Sherrod Brown (D-OH) mounted a successful campaign stressing they would oppose his nomination. The campaign reached its climax several weeks ago with Summers acquiescing and withdrawing his name.
Janet is renowned for her good judgment. She sounded the alarm early about the housing bubble, about excesses in the financial sector, and about the risks of a major recession. She doesn’t have a crystal ball, but what she does have is a keen understanding about how markets and the economy work -- not just in theory but also in the real world. And she calls it like she sees it. Obama
That opened the door wider for Yellen because Wall Street and other economist are more familiar with her due to her role as currently serving behind Bernanke.
As part of the announcement, in thanking Bernanke for his service and introducing Yellen, Obama stressed for a swift confirmation process to insure the transition is smoother than the stalled budget shutdown.
Full transcript here