News / Economy

Obama Taps Yellen to Replace Fed Chief Bernanke

Obama Taps Yellen to Replace Fed Chief Bernankei
X
October 10, 2013 12:11 AM
President Barack Obama has named Federal Reserve Vice Chairman Janet Yellen to head the U.S. central bank after Ben Bernanke steps down at the end of January. The US senate still has to confirm Yellen, but analysts believe she’s a safe choice to steer US monetary policy in troubled economic times. Mil Arcega has more.
President Barack Obama has named Federal Reserve Vice Chairman Janet Yellen to head the U.S. central bank after Ben Bernanke steps down at the end of January. The US senate still has to confirm Yellen, but analysts believe she’s a safe choice to steer US monetary policy in troubled economic times.

She’s poised to become the first woman to head the U.S. central bank. And with more than a decade at the Federal Reserve, Janet Yellen may be one of the most qualified to run it.
    
President Obama described her as tough and effective.

“She sounded the alarm early about the housing bubble, about excesses in the financial sector and about the risks of a major recession.  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," said President Obama.

The 67-year-old economist is being tapped to take the reins of the U.S. central bank when Chairman Ben Bernanke steps down in January.  She thanked the president for his trust in her and vowed to preserve the Federal Reserve’s mandate.

“If confirmed by the Senate, I pledge to do my utmost to keep that trust and meet the great responsibilities that Congress has entrusted to the Federal Reserve, to promote maximum employment, stable prices and a strong and stable financial system," said Yellen.

The president also heaped praise on Bernanke for providing a steady hand - through the worst financial crisis in decades.

“He has truly been a stabilizing force not just for our country but for the rest of the world," said Obama.

Under Bernanke’s leadership, the Fed cut short term interest rates to near zero and has kept long term rates at record lows with an $85 billion a month bond buying program.  

Financial markets welcomed the Yellen nomination as a nod to continuity.
 
Former central bank official Joseph Gagnon says Yellen is likely to continue Bernanke’s policies.

“I don’t see big changes. I think they’re both rather collegial in terms of encouraging, trying to get consensus within a group as much as possible, so I think that will continue," said Gagnon.

Analysts expect an easy confirmation by the Democratic controlled Senate with help from moderate Republicans.  But given the sharp partisan divide in Congress, economists say Yellen’s biggest challenges are yet to come.

You May Like

Egypt's Suez Canal Dreams Tempered by Continued Unrest

Seen as a potential driver of recovery, Cairo’s plan to expand waterway had been raising hopes to give country much needed economic boost More

Ebola Maternity Ward in Sierra Leone First of its Kind

Country already had one of world's highest maternal mortality rates before Ebola arrived, virus has added even more complications to health care More

Malaysia Flight 370 Disappearance Ruled Accident

Aircraft disappeared on March 8, 2014; with ruling, families of 239 passengers and crew can now seek compensation from airline More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8815
JPY
USD
117.85
GBP
USD
0.6581
CAD
USD
1.2420
INR
USD
61.404

Rates may not be current.