News / Economy

Fed Chief Nominee: Stronger US Growth 'Imperative'

Yellen Defends Fed Stimulus Policy at Senate Confirmation Hearingi
X
November 15, 2013 12:53 AM
Federal Reserve Vice Chair Janet Yellen faced tough questions Thursday at a Senate hearing aimed at testing her qualifications to be the next head the US central bank. Yellen is poised to become the first woman to hold that position when Fed chair Ben Bernanke steps down in January. She defended steps taken by her predecessor to stimulate the US economy and vowed to continue those efforts until the U.S. recovery takes hold. Mil Arcega has more.]]

Related video report by Mil Arcega:

Michael Bowman
— U.S. President Barack Obama’s nominee to be America’s next central bank chief, current Federal Reserve Vice Chair Janet Yellen, said the U.S. economy must grow faster at her confirmation hearing before the Senate Banking Committee Thursday.

If confirmed, Yellen would succeed outgoing Federal Reserve Chairman Ben Bernanke, under whose leadership the U.S. central bank launched an unprecedented stimulus program to keep interest rates at historic lows and boost the money supply.

Yellen told senators the economy has improved since the deep recession of 2008-2009, but still needs help.

“Our country has come a long way since the dark days of the financial crisis.  But we have further to go," she said. "I believe the Federal Reserve has made significant progress towards its goals, but has more work to do.”

That work includes further reductions in U.S. unemployment, which stands at 7.3 percent.  Yellen described promoting stronger economic growth as “imperative."

The committee’s top Republican, Senator Mike Crapo, did not dispute the need for more robust growth, but worried that massive monetary stimulus, known as quantitative easing, will eventually cause a spike in inflation and other side effects.

“How do you respond to the concerns that quantitative easing has limited impact on economic growth and is, in fact, creating very serious risks in our financial markets,” he asked.

Yellen said she understands and shares the concerns.

“I would agree that this program cannot continue forever, that there are costs and risks associated with the program," she said. "We are monitoring those very carefully."

Yellen made clear that, for now, her top concern is a lackluster U.S. economy.

U.S. financial markets have responded favorably to Yellen’s nomination.  The Dow Jones Industrial Average hit a record high this week, and advanced further during her testimony on Capitol Hill.  Yellin is likely to receive bipartisan support in both the Banking Committee and the full Senate.  She would become America’s first female central bank chief.

Ben Bernanke’s term expires in January.  The Federal Reserve plays a major role in U.S. interest rates and, by extension, those of other nations around the world.

You May Like

Lebanese Media Unite to Support Palestinians in Gaza

Joint newscast billed as Arab world’s first unified news bulletin in support of Hamas-controlled Gaza Strip More

Photogallery Australian PM Alleges ‘Coverup’ at MH17 Crash Site

Meanwhile, Russia's ambassador to Malaysia denies plane's black boxes were opened before they were handed over to Malaysian officials More

Despite Advances in AIDS Treatment, Stigma Lingers

Leading immunologist tells VOA that stigma is often what prevents those infected with disease from seeking treatment More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
November 15, 2013 12:17 AM
Does US economy need to keep developing and progressing forever? Is it not time for US to seek mature and sustainable economy?

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
IAEA: Iran Turns its Enriched Uranium Into Less Harmful Formi
X
July 22, 2014 10:26 AM
Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Chicago’s Argonne Lab Developing Battery of the Future

In 2012, the U.S. Department of Energy’s Office of Science awarded a $120 million grant to a new technology center focused on battery development - headquartered at Argonne National Laboratory in suburban Chicago, Illinois. As VOA’s Kane Farabaugh reports, there scientists are making the next technological breakthroughs in energy storage.
Video

Video In NW Pakistan, Army Offensive Causes Massive Number of Displaced

Pakistan’s army offensive in North Waziristan has resulted in the large-scale displacement of the local population. VOA's Ayaz Gul reports from northwest Pakistan where authorities say around 80 percent of the estimated 1 million internally displaced persons [IDPs] have settled in Bannu district, while much of the remaining 20 percent are scattered in nearby cities.
Video

Video Kurdish Peshmerga Force Secures Kirkuk, Its Oil

The Kurdistan regional government has sent its Peshmerga troops into the adjacent province of Kirkuk to drive out insurgents, and to secure the area's rich oil fields. By doing this, the regional government has added a fourth province to the three it officially controls. The oil also provides revenue that could make an independent Kurdistan economically strong. VOA’s Jeffrey Young went out with the Peshmerga and filed this report.
Video

Video Malaysia Reeling: Second Air Disaster in Four Months

Malaysia is reeling from the second air disaster in four months involving the country’s flag carrier. Flight 340 vanished in March and despite an extensive search, no debris has been found. And on Thursday, Flight 17, likely hit by a surface-to-air missile, came apart over eastern Ukraine. The two incidents together have left more than 500 people dead. VOA Correspondent Steve Herman reports from Kuala Lumpur.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.