Janet Yellen Nominated To Lead Federal Reserve Bank, White House Says

President Obama Will Make Announcement Wednesday

getty images

By Reuters

Published October 08, 2013.
  • Print
  • Share Share

President Barack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen to be the next head of the U.S. central bank on Wednesday, a White House official said on Tuesday.

If confirmed by the U.S. Senate, Yellen would replace Ben Bernanke, whose current term as head of the Fed ends in January. Obama is due to make the announcement at the White House at 3 p.m. (1900 GMT). Bernanke is also scheduled to attend.

Yellen would be the first woman to lead the institution in its 100-year history.

Yellen has been a forceful advocate of aggressive action to drive down unemployment and would provide continuity with the policies the Fed has established under Chairman Ben Bernanke.

The former professor has a long history in the top ranks of economic policymaking, including her service over the past three years as the Fed’s No. 2 official. If confirmed, she would succeed Bernanke when his second four-year term expires on Jan. 31.

Yellen, 67, would have to oversee the tricky process of reversing the extraordinary stimulus the U.S. central bank put in place to shore up the world’s largest economy, which eclipses Japan and China put together.

If she wins the Senate’s backing, as expected, she would join the Fed’s honor roll along with such household names as Paul Volcker and Alan Greenspan, predecessors as head of an institution that can influence the course of the world economy.

The chairman of the U.S. Senate Banking Committee said on Tuesday he would work to move the nomination of Janet Yellen to head the Federal Reserve “in a timely manner.”

“She has a depth of experience that is second to none, and I have no doubt she will be an excellent Federal Reserve chairman,” Johnson, a Democrat, said in a statement after a White House official said President Barack Obama planned to nominate Yellen to succeed Ben Bernanke as the head of the U.S. central bank.

“I will work with ranking member (Republican Senator Mike) Crapo and the rest of the members of the Banking Committee to move her nomination forward in a timely manner,” he said.

Obama turned to Yellen after his former economic adviser Lawrence Summers withdrew from consideration amid fierce opposition from within Obama’s own Democratic Party, which raised questions about his chances of being confirmed in Congress.

In contrast, Yellen has enjoyed strong support from Democrats. In an unusual move, 20 Senate Democrats signed a letter pressing Obama to turn to the former professor from the University of California at Berkeley.

Her backing on the Republican side of the aisle is much softer. Many Republicans worry the Fed’s policy of holding overnight interest rates at zero and the massive bond purchases it has pursued to drive other borrowing costs lower threaten to create asset bubbles and spark an unwanted pickup in inflation.

Still, Yellen is expected to garner enough support to secure the 60 votes needed to overcome any procedural hurdles in the 100-seat Senate. Democrats control the chamber 54-46.

A respected economist whose research has taken her deep into theories of monetary policy, Yellen has earned a reputation as one of the Fed officials most worried about unemployment and least worried about inflation.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • "You wouldn’t send someone for a math test without teaching them math." Why is sex ed still so taboo among religious Jews?
  • Russia's playing the "Jew card"...again.
  • "Israel should deal with this discrimination against Americans on its own merits... not simply as a bargaining chip for easy entry to the U.S." Do you agree?
  • For Moroccan Jews, the end of Passover means Mimouna. Terbhou ou Tse'dou! (good luck) How do you celebrate?
  • Calling all Marx Brothers fans!
  • What's it like to run the Palestine International Marathon as a Jew?
  • Does Israel have a racism problem?
  • This 007 hates guns, drives a Prius, and oh yeah — goes to shul with Scarlett Johansson's dad.
  • Meet Alvin Wong. He's the happiest man in America — and an observant Jew. The key to happiness? "Humility."
  • "My first bra was a training bra, a sports bra that gave the illusion of a flat chest."
  • "If the people of Rwanda can heal their broken hearts and accept the Other as human, so can we."
  • Aribert Heim, the "Butcher of Mauthausen," died a free man. How did he escape justice?
  • This guy skipped out on seder at his mom's and won a $1 million in a poker tournament. Worth it?
  • Sigal Samuel's family amulet isn't just rumored to have magical powers. It's also a symbol of how Jewish and Indian rituals became intertwined over the centuries. http://jd.fo/a3BvD Only three days left to submit! Tell us the story of your family's Jewish heirloom.
  • British Jews are having their 'Open Hillel' moment. Do you think Israel advocacy on campus runs the risk of excluding some Jewish students?
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.