WORLD
Janet Yellen would replace Donald Kohn, a 40-year veteran of the Fed who announced earlier this month that he would retire on June 23.
US president Barack Obama plans to nominate San Francisco Federal Reserve Bank president Janet Yellen, a respected policy dove, to be vice chairman of the central bank, a source familiar with the process said on Thursday.
Yellen would replace Donald Kohn, a 40-year veteran of the Fed who announced earlier this month that he would retire on June 23. The nomination for the four-year term as the Fed's No. 2 would be subject to Senate approval.
She is considered one of the most "dovish" members of the central bank's policymakers, meaning she is seen to lean toward policies that will boost growth and promote employment rather than those aimed at keeping inflation at bay.
Yellen, reached by telephone, declined to comment, as did the US Treasury Department. The White House did not respond to requests for comment.
"The FOMC top brass is starting to look like the dream team," said Chris Rupkey of the Bank of Tokyo-Mitsubishi, referring to the Fed''s interest rate-setting panel.
"As bad as it looked to lose Fed Vice Chairman Kohn with his decades of experience, the FOMC is going to pick up where it left off with the experience and quiet wisdom," he said. Kohn's impending departure means that Obama has three seats to fill on the seven-member board of the US central bank.
The source said top candidates had been identified for each of the three spots, but all selections, including Yellen's, are subject to completion of a vetting process. The source said the administration also was vetting a number of other candidates in case any of its top picks fell through.
Bloomberg, which first reported that Yellen was Obama's pick, cited a source as saying Sarah Bloom Raskin, the top banking regulator for the state of Maryland, was under consideration for one of the Fed board seats.
Raskin, who has been Maryland''s commissioner of banking regulation, is a lawyer who previously worked at Promontory Financial Group, the Senate Banking Committee, and the New York Fed.
Yellen was chairwoman of the White House Council of Economic Advisers under President Bill Clinton between 1997 and 1999 and a Fed governor between 1994 and 1997.
A top-flight economist, she has warned of "undesirably low" inflation and the prospect of a prolonged, sluggish recovery for the US economy.
"Even with my moderate growth forecast, the economy will be operating well below its potential for several years," Yellen said on Feb. 22. "If it were possible to take interest rates into negative territory I would be voting for that."
Yellen's experience as a regional Fed president positions her well to bridge divides among the system's 12 banks around the country and the board in Washington.
Policymakers are currently split among those who think persistently high unemployment calls for a prolonged period of easy money and those who worry that Fed's massive cash infusion into the financial system poses a dangerous inflation risk if the Fed does not soon begin to pull back reserves.
To forge a consensus, Yellen will have to set aside some of her most growth and employment friendly inclinations. "Given the fact Yellen is seen as most dovish among FOMC members, the market is likely to think that the Fed may take more time until it decides to raise interest rates," said Yoshio Takahashi, a fixed-income strategist at Barclays Capital in Tokyo.
However, she may step into the consensus building role expected of the vice chair, Takahashi said. Given the current popular backlash against banks after reckless lending triggered the worst financial crisis in generations, Obama's selections to the board are likely to be from outside the financial services industry.
Among other names cited as possible candidates for the third vacancy are Massachusetts Institute of Technology economist Peter Diamond, Harvard economists Jeremy Stein and David Scharfstein, and Johns Hopkins University economist Laurence Ball.
Bigg Boss 18: Viral Bhabhi Hema Sharma becomes first evicted contestant of Salman Khan-hosted show
New ITR e-filing portal 3.0 to be launched soon: Check features and other important details
Indian Railway Rules: You won't be able to carry these items during train journey due to...
New Zealand's Suzie Bates surpasses Mithali Raj for massive feat in women’s international cricket
Diwali 2024: Is Deepawali on October 31 or November 1? Know date, rituals, significance and more
Baba Siddique's son Zeeshan dares killers, says, 'they silenced my father, but they forget...'
Flipkart Big Diwali Sale: Massive discount on Moto G85, iPhone 15 Plus and more
CNG prices likely to surge by Rs 4-6, here's everything you need to know
This is world's most expensive condom that is 200 years old, it is made of...
PM Narendra Modi to virtually inaugurate Bagdogra airport terminal worth Rs 1550 crore
Meta AI on WhatsApp to soon serve as your personal assistant, know how it will work
Shocking: People in THIS country love eating crocodile meat, price of reptile's meat per kg is Rs...
Russia shoots down over 100 Ukrainian drones as missile strike on Ukraine injures 17
Delhi pollution hits ‘severe’ levels, AAP govt lists THIS reason as major factor
Elon Musk promises to award $1 million each day to anyone who signs his...
Loud blast in Delhi: Explosion reported outside CRPF school in Rohini, probe underway
‘No clean shave, no love’: Indore women's dating demands sparks discussion, watch viral video
Isha Ambani turns heads in stunning black and white outfit at Mumbai event, it costs...
Big move by Mukesh Ambani as Reliance Industries to revive Campa Cola, plans to disrupt...
'Mom, thank you...': Isha Ambani credits Nita Ambani for her success in touching speech
8th Pay Commission: Minimum salary to be doubled? Big announcement expected on...
Kichcha Sudeep’s mother Saroja Sanjeev passes away at 86 due to…
'The answer lies in the...': Gautam Adani gets candid on why he didn't complete his education
Cultural Shock? Desi singing loudly inside bus in Germany divides opinion, watch viral video
Meet man who worked as waiter, earned Rs 3,000 per month, cracked UPSC exam with AIR...
Noida Master Plan-2041: NCR to get new city, UP government approves 'New Noida', to be readied in…
Understanding Fault Lines: Deep dive into India-Canada diplomatic standoff
Aditya Birla Group's big movement, set to invest Rs 75 crore in THIS Virat Kohli backed brand
Air Pollution: Delhi-NCR air quality turns 'severe', AQI reaches...
70 Bomb Threats In 6 Days: What is the reason behind this surge in hoax warnings?
'I'm sorry...': Throwback to when Ratan Tata fact-checked journalist for a quote attributed to him
Salman Khan gets emotional at Bigg Boss 18 amid death threats: ‘What all I am going through…’
'Grave mistake': Netanyahu warns Iran, Hezbollah after 'assassination' attempt
Mukesh Ambani's next BIG step, Jio Cinema likely to shut down due to...
Meet man, who used to be mechanic, cleared UPSC exam on first attempt, secured AIR 32 to become....
RRB NTPC 2024: Registration window ends today, check easy steps to apply at rrbapply.gov.in
Watch: Little girl lifts huge snake in viral video, parents face backlash for dangerous stunt
Happy Karwa Chauth 2024: WhatsApp wishes, messages and quotes for your loved ones
Zerodha's Nikhil Kamath, known for favouring renting, buys his 1st house; here's why
Meet Ratan Tata’s favourite chef, who began his career in a garage, now he is...
Rajinikanth to compensate producer's loss for Vettaiyan failure? Here's what we know
Meet woman behind the voice of Apple's iPhone 'Siri', never paid for it due to...
Who is IPS Anurag Gupta, acting Jharkhand DGP removed by EC ahead of Assembly polls?
Meet Vijaya Kishore Rahatkar, the newly appointed chairperson of NCW
Watch: Rishabh Pant's monstrous 107m six against Tim Southee leaves New Zealand players stunned