Who Is Janet Yellen?
- Janet Yellen will be nominated to become the next Chair of the Federal Reserve–the central banking system of the United States.
- The Fed is run by a seven-member board of governors who are appointed for a 14-year term. The chair is a member of the board of governors.
- Under the chair’s leadership, the board’s responsibilities include analysis of domestic and international financial and economic developments, addressing the problems of financial crises, supervising and regulating banking institutions and administering consumer protection laws.
Janet Yellen’s former roles include chair of the White House Council of Economic Advisors, president of the San Francisco Federal Reserve Bank and the Vice-chair of the Fed under Ben Bernanke.
Her expected nomination has received support from both Wall Street and progressives. However she has received criticism for supporting Bernanke’s unorthodox policies of keeping interest rates low for borrowers, as critics believe it will cause inflation once the stimulative policies end.
Why We Should Care
- The chair of the Federal Reserve is one of the most powerful positions in the world. Yellen would also serve as a member of several international financial institutions, such as the board of governors of the International Monetary Fund.
It would be Yellen’s job to work on bringing America out of the recession and would therefore impact our generation’s economic outlook.