Janet Yellen The "American Dove"
Two weeks after Chancellor Angela Merkel victory, US President Barack Obama has nominated
Federal Reserve Vice Chair Janet Yellen to run the world's most influential
central bank providing some relief to the market which would expect her to
tread carefully in winding down economic stimulus. She will succeed to Ben
Bernanke to become the first woman at the rein of the world’s largest central
bank.
The
liberal economist is one of the Fed "doves" who believe the government
should use artificial measures such as quantitative easing to boost the
economy, and is not yet too concerned about the effects on inflation. The New Yorker, who is married to George Ackerlof, the Nobel Prize winning economist, has been a strong advocate of the Fed’s $85bn-a-month bond buying scheme, and is expected to keep the taps on for a number of months longer than might have been the case under her predecessor.
Ms. Yellen is expected to keep a sharp focused on improving America’s labour market, already a key feature of Fed policy. Yellen was an assistant professor at Harvard in 1971–76 and an economist with the Federal Reserve Board of Governors in 1977–78, and served as chair of President Bill Clinton's Council of Economic Advisers. She was also the President and Chief Executive Officer of the Federal Reserve Bank of San Francisco.
Already in 2005, she attracts the attention of the governors by
showing concern about the incredible real estate boom and Wall Street several
nicknamed the " Dove " for her interest in the issue of employment. She will
become the first Democrat to head the Fed after 25 years.
