News / USA

Yellen Appointment to Head US Central Bank Wins Overseas Praise

FILE - Janet Yellen, vice chair of the Board of Governors of the Federal Reserve System.
FILE - Janet Yellen, vice chair of the Board of Governors of the Federal Reserve System.
VOA News
The appointment of Janet Yellen to head the powerful U.S. central bank is winning praise on the international front.

U.S. President Barack Obama is set Wednesday to name the 67-year-old Yellen as head of the Federal Reserve after her three-year stint as vice chair.

She would become the first woman to lead the central bank, which often sets the path for international monetary policies and helps shape economies throughout the world. She has been a staunch supporter of policies adopted by retiring Fed chairman Ben Bernanke to keep interest rates low and pump money into the U.S. economy to help it recover from its worst downturn since the Great Depression of the 1930s.

Financial counselor Jose Vinals at the International Monetary Fund said that based on Yellen's academic credentials and background, he could not "think of anybody who is better prepared" to lead the bank.

Japan's chief cabinet secretary, Yoshihide Suga, said that Yellen, along with Bernanke, successfully led world economies out of the recession sparked by the 2008 collapse of the U.S. investment bank Lehman Brothers.

"Our thinking is that she is on an everyday basis a very talented individual," said Suga.

One analyst in the U.S., Cornelius Hurley of the Boston University Center for Finance, Law & Policy, told VOA he expects Yellen to win easy confirmation in the Democratic-controlled U.S. Senate. But he said that Republican opponents of Obama and Federal Reserve policies are likely to question her sharply about the Fed's extensive intervention in the American economy in the last few years.

Hurley said it was a milestone that a woman would head the central bank, but more important that she is unlikely to advocate any sharp shift in policies as the U.S. economy slowly gains strength.

"I think there will be a smooth transition. Obviously, she's been vice chairman since 2010 and she's worked very closely with Chairman Bernanke," said Hurley.

But Hurley said that other new officials are joining the 12-member Fed group that sets monetary policy for the U.S. in the coming weeks and could be less inclined to support continued measures to boost the U.S. economy, the world's largest.

"She's going to face a decidedly more hawkish FOMC, the 12-member FOMC, that's the Federal Open Markets Committee, than Chairman Bernanke has right now," he said.

The U.S. government is in the midst of a nine-day partial shutdown and facing a contentious debate on raising its current $16.7 trillion borrowing limit before October 17 so it does not default on its financial obligations. As a result, Hurley said much could change before Yellen could become head of the Fed on February 1 next year.

If confirmed by the Senate, Yellen would serve a four-year term.

You May Like

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid