Update – Yellen Confirmed!
On February 1st , 2014 Janet L. Yellen will take office, becoming the first woman to head the Federal Reserve. Her nomination was confirmed with a 56 to 26 vote in her favor.
Yellen will be in charge of efforts to ensure the recovery of the US economy and despite the continuity expected from her alignment with Bernanke, she is expected to usher in a change in bank policy.
original article published October 10th, 2013
Washington, D.C, - President Obama to announce his official nomination of Dr. Janet Yellen as the Chair of the Federal Reserve, Wednesday, October 9, 2013 at 3pm from the East Room of the White House.
The Brooklyn, NY native would become the first Democrat to run the Fed since 1987 as well as the first woman in history to chair the Federal Reserve.
Since 2010, Yellen, 67, has held the position of Vice-Chair of the Fed, and if confirmed would replace Ben Bernake. Prior to joining the Fed, Yellen was the CEO of Federal Reserve Bank of San Francisco and chair of the Council of Economic Advisors during the Clinton Administration.
The nomination comes after Obama's first choice, former Treasury secretary Larry Summers withdrew in the face of opposition from the Democratic Party and a heated contest between the two. She was one of Bernake's biggest supporters in establishing low interest rates and large-scale bond purchases. The transition would, as such, be seamless, keeping markets at bay.
Yellen's concern for the high unemployment rate by keeping rates low has earned her the nickname "dove" as she takes on the "hawks" from Wall Street concerned primarily about inflation. She is also known for her accurate predictions about the burst of the housing and financial bubbles.
At the nomination ceremony Yellen said "The mandate of the Federal Reserve is to serve all the American people. And too many Americans still can't find a job, and worry how they'll pay their bills and provide for their families. The Federal Reserve can help if it does its job effectively."
A widely respected economist; Yellen received her PhD in Economics from Yale University (1971), and has taught alongside her Nobel Prize-winning economist husband George Akerlof at the London School of Economics, Harvard University as well as at the University of California-Berkeley.
For a more in depth analysis of the Yellen era, see what the WSJ, CNN, the Washington Post and YahooFinance have to say.