House Democratic Women To Obama: Nominate Janet Yellen For Fed Chair
Source: Huffington Post
WASHINGTON -- A majority of the Democratic women serving in the House of Representatives are urging President Barack Obama to nominate Janet Yellen as chair of the Federal Reserve, putting additional pressure on the president to reject economist Larry Summers, who is rumored to be the frontrunner.
Thirty-eight of the 62 Democratic women in the House have signed on to a letter circulated by Rep. Maxine Waters (D-Calif.), saying that Yellen, currently the Fed vice chair, would be the "best choice" to lead the institution. It comes on the same day that Obama met with Democrats on Capitol Hill and heard from many members who were frustrated that Summers is reportedly the president's top choice for the job.
"Doctor Yellen has demonstrated a unique understanding of the impact of the Federal Reserve's policies on the middle class, with a critical focus on the balance of the mandate between stable prices and low unemployment," the letter reads. "During the subprime bubble, at a time when many economists were optimistic about unprecedented growth in the economy, she saw the bubble for what it was and predicted disaster in the banking system."
Long before serving as Obama's chief economic adviser, Summers worked in the Clinton administration as a protege of Treasury Secretary Bob Rubin, where he helped lead the effort to deregulate Wall Street. Many Yellen supporters are worried that Summers would follow in the footsteps of his mentor and dial back the Fed's efforts to lower unemployment in order to appease the bond market. Yellen, meanwhile, argues that protecting bondholders is not the Fed's only job.
Read more: http://www.huffingtonpost.com/2013/07/31/house-democrats-janet-yellen_n_3683929.html
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