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23 Sep 2013
Yellen to take reins at Fed
FXstreet.com (Athens)- Yellen seems to be the “grand favorite” for the top chair of the most prestigious Central Bank all over the globe.
Yellen draws the attention in the post FOMC era; will she be the first woman in Fed?
First of all we should say that if finally Yellen gets elected traders should be at least content; the credibility on FOMC projections and forward guidance will be heavily boosted as she is considered to be the leading force behind the current Fed’s communication policy. This could be seen as a very positive step anyhow, due to the fact that the recent FOMC meeting and minutes release, wounded immensely Fed’s prestige and credibility.
Yellen, who is seen as one of the most dovish Fed officials, is likely to enjoy solid backing from Democrats, but could be as well seen very cautiously from the vast majority of Republicans worried that the central bank's aggressive efforts to spur stronger economic growth could fuel inflation or asset bubbles. However, news wires suggest that “Two Senate Democratic aides, who requested anonymity, said officials had encouraged senators to support Yellen and talk her up, hardening the sense that President Barack Obama has settled on her to replace Fed chief Ben Bernanke when his term ends in January. It is noteworthy to say that Yellen will be the first woman to hold the top chair of Fed.
Obama will take his decision in the upcoming weeks but surely after his long-tour in Asia on October 6. We should remind to the readers, that Yellen became the front runner after former Treasury Secretary Lawrence Summers, went on “Summers vacations”, i.e. quit from the race on Sunday. While Obama was an amid supporter of Summers, he may feels much safer now, as Summers had a ‘notoriously gray record’.
Elaborating on, Summers record was full of advocacy for financial deregulation, as well as by remarks characterized him as sexist. What’s more, Obama said last month that Summers and Yellen were both being considered for the job, the most powerful economic office in the nation, but since Summers is not longer a candidate, Yellen seems to be the first woman taking charge of the top chair of Fed.
Needless to say, the above depicted situation with Summers resignations does not prove that Yellen will have an easy way to take over the Fed’s position. Democrats control the Senate 54-46, but any nomination is likely to need to secure 60 votes to overcome procedural hurdles. What’s more, up to now, Republicans have not indicated whether they might seek to block a Yellen nomination…In the upcoming moths, Yellen’s issue will be one of the hottest in States, apart from debt-ceiling and “tapering”.
Yellen draws the attention in the post FOMC era; will she be the first woman in Fed?
First of all we should say that if finally Yellen gets elected traders should be at least content; the credibility on FOMC projections and forward guidance will be heavily boosted as she is considered to be the leading force behind the current Fed’s communication policy. This could be seen as a very positive step anyhow, due to the fact that the recent FOMC meeting and minutes release, wounded immensely Fed’s prestige and credibility.
Yellen, who is seen as one of the most dovish Fed officials, is likely to enjoy solid backing from Democrats, but could be as well seen very cautiously from the vast majority of Republicans worried that the central bank's aggressive efforts to spur stronger economic growth could fuel inflation or asset bubbles. However, news wires suggest that “Two Senate Democratic aides, who requested anonymity, said officials had encouraged senators to support Yellen and talk her up, hardening the sense that President Barack Obama has settled on her to replace Fed chief Ben Bernanke when his term ends in January. It is noteworthy to say that Yellen will be the first woman to hold the top chair of Fed.
Obama will take his decision in the upcoming weeks but surely after his long-tour in Asia on October 6. We should remind to the readers, that Yellen became the front runner after former Treasury Secretary Lawrence Summers, went on “Summers vacations”, i.e. quit from the race on Sunday. While Obama was an amid supporter of Summers, he may feels much safer now, as Summers had a ‘notoriously gray record’.
Elaborating on, Summers record was full of advocacy for financial deregulation, as well as by remarks characterized him as sexist. What’s more, Obama said last month that Summers and Yellen were both being considered for the job, the most powerful economic office in the nation, but since Summers is not longer a candidate, Yellen seems to be the first woman taking charge of the top chair of Fed.
Needless to say, the above depicted situation with Summers resignations does not prove that Yellen will have an easy way to take over the Fed’s position. Democrats control the Senate 54-46, but any nomination is likely to need to secure 60 votes to overcome procedural hurdles. What’s more, up to now, Republicans have not indicated whether they might seek to block a Yellen nomination…In the upcoming moths, Yellen’s issue will be one of the hottest in States, apart from debt-ceiling and “tapering”.