Janet Yellen Expected To Be Tapped as Federal Reserve Vice Chairman
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President Barack Obama is expected to appoint Janet Yellen, currently president of the Federal Reserve Bank of San Francisco, as the new vice chairman of the nation's central bank.
The move would put a close ally of Fed Chairman Ben Bernanke in the No. 2 spot of the Federal Reserve. Yellen is an economist who sees supporting growth as the most difficult challenge than lies ahead in the recovery of the U.S. economy.
If confirmed by the Senate, Yellen would enter the job with substantial knowledge of the Fed that would allow her to play an immediate role in shaping the future of the recovery. Current vice chairman, Donald L. Kohn plans to vacate the position when he retires on June 23.
"Some people worry that sustained federal budget deficits and the huge increase in the Federal Reserve's lending and stimulus programs could eventually lead to high inflation," Yellen said in a speech on February 22. "Others take the opposite view, arguing that economic slack and downward pressure on wages and prices are pushing inflation down. I would put myself squarely in the second camp."
Yellen was from 1994 to 1997 a member of the Federal Reserve Board of Governors and has been at the head of the San Francisco Fed since 2004. She would take a substantial pay cut by filling the position from $392,000 in 2008 to a vice chairman salary of $190,000.
Also, barring any last minutes issues, Obama will like also appoint Sarah Bloom Raskin to one of the two empty positions on the seven-member Fed Board of Governors, according to sources cited by a report in the Washington Post on Friday. Raskin currently serves as the Maryland commissioner of financial regulation.
The Washington Post added that the other Board of Governors position may be filled by Peter Diamond, an MIT economist and Social Security expert.
The move would put a close ally of Fed Chairman Ben Bernanke in the No. 2 spot of the Federal Reserve. Yellen is an economist who sees supporting growth as the most difficult challenge than lies ahead in the recovery of the U.S. economy.
If confirmed by the Senate, Yellen would enter the job with substantial knowledge of the Fed that would allow her to play an immediate role in shaping the future of the recovery. Current vice chairman, Donald L. Kohn plans to vacate the position when he retires on June 23.
"Some people worry that sustained federal budget deficits and the huge increase in the Federal Reserve's lending and stimulus programs could eventually lead to high inflation," Yellen said in a speech on February 22. "Others take the opposite view, arguing that economic slack and downward pressure on wages and prices are pushing inflation down. I would put myself squarely in the second camp."
Yellen was from 1994 to 1997 a member of the Federal Reserve Board of Governors and has been at the head of the San Francisco Fed since 2004. She would take a substantial pay cut by filling the position from $392,000 in 2008 to a vice chairman salary of $190,000.
Also, barring any last minutes issues, Obama will like also appoint Sarah Bloom Raskin to one of the two empty positions on the seven-member Fed Board of Governors, according to sources cited by a report in the Washington Post on Friday. Raskin currently serves as the Maryland commissioner of financial regulation.
The Washington Post added that the other Board of Governors position may be filled by Peter Diamond, an MIT economist and Social Security expert.
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