The battle for the Federal Reserve is finally coming to a close as President Obama will choose Vice Chairwoman of the Board of Governor of the Federal Reserve System, Janet Yellen.
If confirmed, Yellen would be the first woman picked to lead the Fed and the first Democrat since 1987.
Before Obama chose Ms. Yellen, many believed the first person on the President’s radar was former Secretary of the Treasury Larry Summers. Elevating, or at least attempting to, was widely panned by those on the left.
Summers played a role in causing the Great Recession and is blamed for having a hand in deregulating Wall Street. Its all in this nifty article titled “Larry Summers: No Regrets on Deregulation.”
Yours truly, and a cavalcade of voices from the left and right, loudly protested a Summers nomination.
But we’re here to talk about Yellen and why she was picked.
On Wall Street and through the halls of Democratic offices on the Hill, Yellen is known as a “dove,” or someone who cares more about employment than inflation.
Some on Wall Street believe that she would continue the Fed’s easy money policy and would not begin to taper. Her Democrat buddies simply would like for the unemployment rate to remain low. Well, lower than what it’s been over the past few years.
In the end, Yellen will likely have an easy confirmation. She lacks the controversial nature of Larry Summers and hasn’t angered or pissed enough people off along the way to have her nomination blocked.
I’m not sure if Yellen is right for the job as we are only able to judge based off of past practices and what we hear. Yellen isn’t holding the golden ticket to unlock a hidden American economy bursting at the seams with financial opportunity for all. She’s simply the first woman to lead America’s most important bank and will set its financial policies.
No big deal, right?
Let’s pay attention to what she says once she’s installed as the new chair, or if and when she’s confirmed, and if her dove nature soon morphs into that of a hawk.
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