News / Economy

Considering a New Head for the US Fed

Considering a New Head for the US Fedi
X
September 05, 2013 9:46 PM
The man who guided the world's largest economy through the worst financial crisis in decades is expected to step down early next year. The financial press is filled with speculation about who will take over from Ben Bernanke, the current chairman of the Federal Reserve, as the U.S central bank is known. There are many possible candidates, but most of the speculation focuses on just two. VOA’s Jim Randle has this report.
The economist who guided the world's largest economy through the worst financial crisis in decades is expected to step down early next year.  The financial press is filled with speculation about who will take over from Ben Bernanke, the current chairman of the Federal Reserve, as the U.S central bank is known. There are many possible candidates, but most of the speculation focuses on just two.

President Obama appointed Ben Bernanke to a second term as head of the Federal Reserve in 2009.

To fight the recession, Bernanke took unprecedented steps to cut interest rates in a bid to boost economic growth, which came slowly.  

Now, as his term ends, an online Irish betting site "Paddy Power" is taking wagers on who might replace Bernanke. 

One contender is the Fed’s current vice chairman, Janet Yellen, a former economics professor at Berkeley who headed the Federal Reserve Bank of San Francisco, and was an economic adviser to the White House.

Bets are also being placed on former U.S. Treasury Secretary, one-time presidential economic adviser and former president of Harvard University, Larry Summers.  

Critics say Summers is too abrasive to win consensus among top fed officials.

But LaSalle University finance professor Walter Schubert says Summers' toughness might help get economic and budget decisions out of the bickering Congress.

"Well, the best argument for Larry Summers, I think, is his personality. He’s driven, he wants to have an impact and I think he would put a lot of pressure on Congress. I think he’d be excellent at pressuring Congress to move in the proper direction," said Schubert.

Rival Janet Yellen is seen by some experts as doing less to push Congress, but more to regulate the economy.

Abby McCloskey researches economic issues at the American Enterprise Institute and says Yellen’s long experience at the fed would reassure investors.

“She is predictable. The markets know what she thinks. When she gets in there, no surprises, no wild cards. We have enough wild cards in the rest of the economy,” says McCloskey.

Michael Cox, a former chief economist at the Federal Reserve Bank of Dallas, who is now at Southern Methodist University, says Yellen is a strong candidate. 

"She is a very good economist in my opinion, more seasoned and more reasoned and more experienced in the fed," says Cox.

But Cox adds that both Yellen and Summers are too quick to meddle in the economy.

Said Dawlabani, author of a book that advocates a new approach to economics, says it's time to put more women in charge of large companies and major financial institutions.

“Because women see the bottom line through the lens of care and responsibility, their leadership style is different than men. Men have to learn to use emotional intelligence; women are naturally equipped with these soft skills," says Dawlabani.

Dawlabani adds that companies and countries would be more prosperous if they focused less on next quarter’s profits and more on the impact that a company has on society, the environment, suppliers, customers and employees.

Choosing the right approach and the right candidate is up to the president, and the candidate must be confirmed by the Senate.

While most news stories focus on just two candidates, Obama has made appointments in the past that were a surprise to most economists.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7829
JPY
USD
106.96
GBP
USD
0.6195
CAD
USD
1.1258
INR
USD
61.295

Rates may not be current.