This Economist Says Yellen Isn’t ‘Too On Board the Stimulus Train’
President Obama on Wednesday nominated Janet Yellen, whom he called “one of the nation’s foremost economists and policy makers,” to lead the Federal Reserve system, replacing Ben Bernanke. In elevating Yellen from her current position as vice chair of the Fed, she will become the first woman to lead the central bank and joins the president as an independent co-steward of the American economy.
“Given the urgent economic challenges facing our nation, I urge the Senate to confirm Janet without delay,” Obama said, drawing attention to the only roadblock to her nomination: Senate approval. “I’m absolutely confident that she will be an exceptional chair of the Federal Reserve.”
Greg Mankiw — chairman of the Council of Economic Affairs from 2003 to 2005, during the administration of former President George W. Bush — agrees. When asked on Bloomberg Television’s “Market Makers” whether the criticism that Yellen is “too on board the stimulus train” is accurate and if “she [is] the right choice for the top job at the Federal Reserve,” he responded with enthusiasm.
“I think she is a great choice,” Mankiw said. “I’m not a great fan of a lot of President Obama’s decisions, but this one I’m a fan of. Janet is a very smart economist. She’s very much mainstream, lots of Central Bank experience, and most important, she is a consensus builder. She’s not going to go her own way. She will look to her committee; she’s going to look to her staff and try to find a point of view a lot of people can sign onto. That’s good thing.”