Today President Obama announced his nomination of Janet Yellen as the Federal Reserve Chairwoman at a 3:00 pm EST press conference. He was joined at the press conference by Janet Yellen and current Federal Reserve Chairman Ben Bernanke whose term expires January 31, 2014. Yellen needs to secure 60 of 100 Senate votes to become the first woman to be Chair of Board of Governors of the Federal Reserve System. Currently the members of the Senate are 54 Democrats and 46 Republicans.
President Obama previously was expected to nominate his former economic adviser Lawrence Summers, but he received opposition from his own party and Summers withdrew himself from consideration. Lawrence Summers oversaw the response to the financial and economic crisis in the Obama administration’s first term, and he has been criticized for his relationship with Wall Street and controversial remarks about women, math and science.
Janet Yellen, 67, has served on the Board of Governors on the Federal Reserve since 1994, chaired the Council of Economic Advisers from 1997 to 1999 under the Clinton Administration and was elected vice president of the Board by the Obama Administration in 2010. She is an economist who is projected to win by a large margin with democratic support and qualified experience to lead the Federal Reserve in designing the next steps to help the economy grow. Yellen was born in Brooklyn and is married to Nobel Prize-winning economist George Akerlof. They have a son, Robert, who is also an academic economist.
According to buzzfeedpolitics.com, “Appointing Janet Yellen will be a good repair job,” NOW President Terry O’Neill said. “She is absolutely recognized as the best candidate, and the only other candidate around there would be men. Again, you don’t slam the glass ceiling down on the head of a better qualified woman so that you can appoint some man who’s less qualified.”
Major responsibilities of the Federal Reserve are to determine the interest rate, inflation rate and stimulate economic growth. The markets future rates increased from reports of the nomination prior to the official announcement this afternoon.
According to talkradionews.com, “Markets will be comfortable with a familiar face,” said Michael Feroli, chief U.S. economist at JPMorgan Chase. “I think she will be pretty aggressive in pursuing full employment and be willing to tolerate moderate inflation risk.”
The Federal Reserve’s Federal Open Market Committee has been meeting in Washington the last few days. The minutes from the September 18th Federal Reserve meeting were released. The Fed is on track to decrease its bond buying back program from an extraordinary stimulus package. The 30 year bond yield rose 4 points to 3.735 percent. The chair of the Federal Reserve has a dual mandate of global monetary policy and increasing employment.
"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates." 1977 Federal Reserve Act
Check out the video for what Sen. Pat Roberts said on Monday that he would support Federal Reserve Vice Chair Janet Yellen as the board's next chair.
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