News / USA

Yellen to Face Tough Questioning on US Central Bank Nomination

FILE - President Barack Obama applauds as Janet Yellen, vice chair of the Board of Governors of the Federal Reserve System, speaks after the president announced he is nominating Yellen to be chair of the Federal Reserve, succeeding Ben Bernanke, in the St
FILE - President Barack Obama applauds as Janet Yellen, vice chair of the Board of Governors of the Federal Reserve System, speaks after the president announced he is nominating Yellen to be chair of the Federal Reserve, succeeding Ben Bernanke, in the St
VOA News
Janet Yellen is likely to face sharp questioning at her confirmation hearing this week to become chairwoman of the U.S. central bank, but most analysts think eventually she will win approval as one of the most powerful unelected leaders in the world.

There does not appear to be any organized opposition to U.S. President Barack Obama's nomination of the 67-year-old Yellen to become the first woman to head the Federal Reserve when the current chairman, Ben Bernanke, leaves office at the end of January.

But Republicans on the Senate Banking Committee are expected to closely question Yellen, now the Fed's vice chairman, about policies the central bank has adopted to try to boost the American economy, the world's largest. The country is still faced with high unemployment as it slowly recovers from the 2009 recession, the steepest downturn for the U.S. since the Great Depression of the 1930s.

The chief economist at the Standard & Poor's credit-rating company, Beth Ann Bovino, said she thinks Yellen will be confirmed. Bovino said lawmakers, however, will want answers from Yellen at Thursday's hearing about her support for the Fed's $85-billion monthly purchase of securities to pump more money into the economy. Specifically, Bovino said they will want to know when the Fed might begin to trim the purchases, to "taper" them, in the jargon of economists.

But Bovino said Yellen might not be as forthcoming as some lawmakers would like. "I think she's going to stay away from questions of tapering. On that note, I think she's going to again stick to the party line and hold to the decision on tapering is really a matter of [economic] data. It's data driven."

At least one Republican senator, Lindsey Graham of South Carolina, said he will try to block Yellen's confirmation until Obama agrees to let more State Department officials testify about the details of the 2012 terrorist attack on a U.S. compound in Benghazi, Libya that killed four American diplomats, including an ambassador.

Economic analyst Mark Hamrick of bankrate.com said any delay in Yellen's confirmation would create uncertainty in world financial markets and slow the U.S. economy.

"We're at a point with the U.S. economy where we need to be subtracting uncertainty, not adding to it. And if, indeed, some of these senators were to try to hold up the Yellen nomination, they're again causing, in a sense, damage to the economy," said Hamrick.

Policy makers at the Federal Reserve, led by its chairman, make decisions that shape the U.S. economy. They also often influence key leaders overseas, though, as they decide how to advance the massive economies in Europe and Asia and the more regional economic fortunes in South America, Africa and elsewhere.

Bovino said that as a result, the Fed chairman is an important figure in world economic circles.

"There certainly now is a question of unwinding their large bond purchases and that's going to have large ramifications across the world. So whomever's in charge is going to be the leader and those decisions... will certainly be someone that people are going to be watching," said Bovina.

You May Like

Anti-Terror Drills Highlight China’s Push Into Central Asia

China, Russia, several central Asian countries wrap up massive anti terrorism military drills in Inner Mongolia More

Erdogan’s First Step: Secure More Power in New Role in Turkey

Erdogan was sworn in as Turkey's first popularly elected president on Thursday; he picked former foreign minister Ahmet Davutoglu as PM More

Pakistan Army Fails to Break Political Deadlock

PM Sharif claims he didn't ask army to defuse crisis; military rejects claim More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Battles Pro-Russia Rebel Assaulti
X
Daniel Schearf
August 29, 2014 9:30 PM
After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.

AppleAndroid