Janet Yellen: Former Head of the Federal Reserve
To fully understand the significance of Janet Yellen’s position as head of The Federal Reserve it is worth a moment to understand what the Federal Reserve does. The link below will take you to the home page of the Federal Reserve:
https://www.federalreserve.gov/
“The Federal Reserve conducts the nation’s monetary policy by managing the level of short-term interest rates and influencing the availability and cost of credit in the economy. Monetary policy directly affects interest rates; it indirectly affects stock prices, wealth, and currency exchange rates. Through these channels, monetary policy influences spending, investment, production, employment, and inflation in the United States. Effective monetary policy complements fiscal policy to support economic growth.”
In addition, The Fed, as it is more commonly referred to, promotes financial system stability, and supervises and regulates financial institutions.
You can read about all of the responsibilities of the Fed with this link:
https://www.federalreserve.gov/aboutthefed/pf.htm
I have seriously abbreviated the role of The Fed in our economy, but the role of The Fed, in the event you are asked is to promote: full employment, low inflation, and financial stability.
The Fed is the ultimate Rubiks Cube. There are so many moving parts to our economy it seems inconceivable that one person would have the knowledge and experience to be head of the board.
Janet Yellen does.
A press release dated April 12, 2004 from The Fed announced the appointment of Dr. Yellen (the only woman to earn a Ph.D. in Economics from Yale in 1971) to President & Chief Executive Officer of the Federal Reserve Bank of San Francisco. George M. Scalise, Chairman of the San Francisco Fed’s Board of Directors said the following:
“We conducted a nationwide search and identified a slate of highly qualified candidates. Dr. Yellen rose to the top as our pick, because of her extraordinary combination of monetary policy expertise, experience as a Federal Reserve Board Governor in Washington, fiscal policy experience at the White House, and her extensive academic, international trade, finance, and economic experience and research background.”
She is the ultimate super economist. She has been called a “rock-star.” What I find more interesting is her research papers and speeches. She is readable. You can understand what she is saying. She doesn’t wear you down with jargon. She can explain complicated topics in plain English. She taught Economics at the London School of Business, Harvard, MIT and for 24 years at the Haas School of Business – UC Berkeley. Those many years of teaching, I am sure, honed her talent for explaining complicated subjects in clear language.
On Monday November 20, 2017 Janet Yellen submitted her letter of resignation, effective upon the swearing in of her successor, Jerome H. Powell. In an unusual move the current administration chose not to re-nominate her. The last time that happened was in 1927 when Daniel R. Crissinger was Chairman of the Federal Reserve.
I have attached the letter here: [icon name=”file-text-o” class=”” unprefixed_class=””]
“Janet Yellen Didn’t Set Out to Be a Feminist Hero” is the title of an article I like that appeared in The New York Times on December 9th, 2017.
It is hard to find a hero today. She might not have set out to be a feminist hero, but a hero she is. She is my hero and inspiration.
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