TEMPO.CO, Jakarta - US President Barack Obama has chosen Federal Reserve Deputy Chairwoman Janet Yellen to be the next head of the U.S. central bank on Wednesday, putting her on course to be the first woman to lead the institution in its 100-year history. If confirmed by the U.S. Senate, Yellen would replace Ben Bernanke, whose second four-year term as head of the Fed expires on January 31.
Obama announced his nomination of Yellen at the White House at 3 pm local time (1900 GMT).
Yellen is known to be a forceful advocate of aggressive action to drive down unemployment. With Yellen helming The Fed, there would be continuity within the policies the bank has established under Bernanke. Her main challenge will be to steer policy back to a more normal footing and slowly wind down the extraordinary measures taken in the five years since the financial crisis.
Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel said the market will be "mildly pleased" with Yellen because she "uses the same playbook as Bernanke, and the market should not expect any change to the status quo."
Obama turned to Yellen after his former economic adviser Lawrence Summers withdrew from consideration amid fierce opposition from within the Democratic Party, raising questions about his chances of congressional confirmation.
REUTERS | MARTHA T