Senate Set to OK Yellen as Central Bank Chief

The U.S. Senate appears set to confirm Janet Yellen as the new head of the U.S. central bank, making her one of the most powerful figures in world economic circles. The Senate is scheduled to vote late Monday on her nomination as chair of the Federal Reserve, replacing Ben Bernanke who is leaving at the end of the month.  Analysts say Yellen has enough votes to win confirmation. 

Economists predict that Yellen, an economics professor and Federal Reserve vice chair will continue many of Bernanke's efforts to boost the economy. Both have called for a gradual end of the central bank’s multibillion-dollar program to keep interest rates low and stimulate the economy.


President Barack Obama described Yellen is tough and effective.

“She sounded the alarm early about the housing bubble, about excesses in the financial sector and about the risks of a major recession," he said. "She doesn’t have a crystal ball, but what she does have is a keen understanding of how markets and the economy work - not just in theory but in the real world.”

Yellen has written extensively about the causes and impact of unemployment, and some analysts say she may put even more emphasis on creating jobs.

"Too many Americans still cannot find a job and worry hasn't paid their bills and provided for their families," she said.

Unemployment hit 10 percent during the recession, and has now fallen to 7 percent, but that number is still above its historic average.

Economists say Yellen will likely continue Bernanke's policies of holding short-term interest rates close to zero by using the Fed's massive program of buying securities.

The U.S. central bank has been buying $85 billion in securities every month, to pump more money into the economy and make it easier for businesses and individuals to borrow. But economists say that stimulus must end eventually, to avoid sparking inflation that could damage the economy.  

“I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy," she said.

Yellen once headed the Federal Reserve Bank of San Francisco. Former president Bill Clinton named her head of his Council of Economic Advisers in 1997. The 67-year-old economist is professor emeritus of the University of California at Berkeley, where she has been on the faculty for decades.  

Senate confirmation would make her the first woman to head the central bank for the world's largest economy.


fuente: La Voz de América, http://www.voanews.com/content/senate-set-to-ok-yellen-as-new-central-bank-chief/1824137.html

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