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| Janet Yellen answers a question from a participant at the International Monetary Conference in Shanghai, China. |
A White House official has said that President Barack Obama will
nominate Janet Yellen to head the U.S. Federal Reserve on Wednesday.
If confirmed by the Senate, the 67-year-old Yellen would replace Ben Bernanke, whose second term as head of the U.S. central bank ends January 31.
Yellen is currently the vice chair of the Fed. Previously, she was a professor at the University of California at Berkeley, head of the Federal Reserve Bank of San Francisco and a presidential adviser.
Her speeches and public comments favor the low interest rate policies that Bernanke has been using to try to cut unemployment and get the U.S. economy out of its worst recession since the Great Depression.
The Federal Reserve has cut short-term interest rates to near zero and has been trying to cut long-term rates through a program of buying $85 billion per month of certain securities.
The person who heads the Fed will have to decide how soon and how quickly to end this stimulus effort. Economists say if the support is withdrawn too quickly, the economy could lapse back into recession. If stimulus efforts go on for too long, however, it could spark inflation that could harm the economy.
The other candidate was considered a favorite for the job, former Treasury secretary and presidential adviser Larry Summers, withdrew his name from consideration in the face of opposition from senators in Obama's Democratic party.
An official announcement of Yellen's nomination is expected at 3 PM in Washington.
If confirmed by the Senate, the 67-year-old Yellen would replace Ben Bernanke, whose second term as head of the U.S. central bank ends January 31.
Yellen is currently the vice chair of the Fed. Previously, she was a professor at the University of California at Berkeley, head of the Federal Reserve Bank of San Francisco and a presidential adviser.
Her speeches and public comments favor the low interest rate policies that Bernanke has been using to try to cut unemployment and get the U.S. economy out of its worst recession since the Great Depression.
The Federal Reserve has cut short-term interest rates to near zero and has been trying to cut long-term rates through a program of buying $85 billion per month of certain securities.
The person who heads the Fed will have to decide how soon and how quickly to end this stimulus effort. Economists say if the support is withdrawn too quickly, the economy could lapse back into recession. If stimulus efforts go on for too long, however, it could spark inflation that could harm the economy.
The other candidate was considered a favorite for the job, former Treasury secretary and presidential adviser Larry Summers, withdrew his name from consideration in the face of opposition from senators in Obama's Democratic party.
An official announcement of Yellen's nomination is expected at 3 PM in Washington.
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