Yellen to be nominated for Fed chief

US President Barack Obama will nominate Federal Reserve Vice-Chair Janet Yellen to be the next head of the US central bank.

If confirmed by the US Senate, the nomination will put Yellen (pictured) on course to be the first woman to lead the institution in its 100-year history. Famous for being the advocate for aggressive action to stimulate US economic growth through low interest rates and large-scale bond purchases, Yellen would replace Ben Bernanke, whose second term as Fed chairman expires on January 31.

According to Reuters, Yellen would provide continuity with the policies the Fed has established under Bernanke. According to the press agency, analysts have positively hailed the news and say Yellen’s view, more focused on unemployment levels than inflation rate, are ideal for managing US monetary policy.

“Thank God Yellen will be nominated under the current circumstances. You don’t want a change at the central bank right now,” said Dan Fuss, a portfolio manager at Loomis Sayles in Boston. “This Yellen news is one uncertainty lifted from already nervous markets,” Reuters reported.

Yellen has been the Fed’s vice chairwoman since 2010. Before assuming that role, she held posts as president of the Federal Reserve Bank of San Francisco, as a Fed governor, and as chairwoman of the Council of Economic Advisers under President Bill Clinton.




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