It was a good day when Larry Summers, former Secretary of the Treasury and economic advisor to President Obama withdrew his name for consideration as new the Chairman of the Federal Reserve. It’s an even better day now that Janet Yellen has been nominated for the position. If confirmed, Ms. Yellen will make history as the first female chair of the Federal Reserve, the nation’s central banking system.
The Fed’s role is critical and crucial for economic stability; since its creation in 1913 its role has become broader. According to official Federal Reserve documents its purpose is to conduct the nation’s monetary policy, and both supervise and regulate banking institutions. Additionally, the Fed provides financial services to depository banking institutions, the U.S. government itself, and even foreign official institutions.
Ms. Yellen, an economist and professor, has been serving as the Vice Chairwoman of the Board of Governors of the Federal Reserve System. Yellen holds a Bachelor’s degree from Brown University a Ph.D. in Economics from Yale University. Her resume includes teaching economics at both the London School of Economics and the University of California, Berkeley During the late 1990s, she chaired former President Bill Clinton’s Council of Economic Advisors.
President Obama is expected to make the official nomination announcement today at 3pm ET and is expected to move through the confirmation process in a relatively smooth manner to become sworn in on February 15, 2014, replacing outgoing Fed Chairman Ben Bernanke. Senate Banking Committee Chairman Tim Johnson said, “I commend President Obama on his selection of Dr. Yellen to be the first woman to serve as Federal Reserve Chairman,” and further said, “She has a depth of experience that is second to none, and I have no doubt she will be an excellent Federal Reserve Chairman.”