President Barack Obama officially nominated Janet Yellen, vice chairperson of the Federal Reserve to succeed Ben Bernanke who will be retiring from his post. The President encouraged the Senate to approve her appointment immediately on Wednesday.
The President said, “Given the urgent economic challenges facing our nation, I urge the Senate to confirm Janet without delay. I’m absolutely confident that she will be an exceptional chair of the Federal Reserve.”
Yellen strongly supported the Federal Reserve’s policy to stimulate the economic growth of the United States through a huge bond-buying program ($85 billion a month) and maintaining low interest rates.
As vice chairman of the Federal Reserve, Yellen is well-known for her good judgment, and she was the first person who expressed early warnings regarding the housing bubble and financial meltdown, which dragged the country’s economy on the verge of collapse in 2008.
“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,” said Pres. Obama.
The Senate is expected to confirm Yellen’s nomination despite oppositions from a few Republicans such as Senator Michael Crapo of Idaho and a senior member of the Senate Banking Committee. In his website, Sen. Crapo indicated that he is not committed in supporting Yellen’s appointment.
“The next Fed Chair faces a unique set of challenges, including winding down unconventional monetary policy, implementing a long list of unfinished rules under Dodd-Frank without over-regulating the community banking sector, and effectively communicating future policies to the markets and the public. I continue to strongly disagree with the Fed’s use of quantitative easing, and am eager to learn Ms. Yellen’s vision for the direction of the Federal Reserve as we go through the nomination process,” said Sen. Crapo
Majority of investors believe that she will continue the current policy of the Federal Reserve and will not be aggressive in withdrawing the bond-buying program.
Yellen will become the first woman to lead the Federal Reserve and one of the most influential central banks worldwide if the Senate confirms her appointment.
Yellen vowed to promote a good financial system, maximum employment, and stabilize prices. She said, “While we have made progress, we have farther to go. The mandate of the Federal Reserve is to serve all the American people, and too many Americans still can’t find a job and worry how they’ll pay their bills and provide for their families.”
Meanwhile, Pres. Obama praised and expressed gratitude to Bernanke for his extraordinary service in helping the economy overcome the worst recession since the Great Depression.