janet yellen

James Politi

Peter Diamond, the Massachusetts Institute of Technology economist, is arguably the most interesting of the three nominations by President Barack Obama to the Federal Reserve Board of Governors.

Janet Yellen, president of the San Francisco Fed, is a consummate monetary economist close to Don Kohn in her views on interest rates, and has already been at the heart of many of the US central bank’s decisions during chairman Ben Bernanke’s tenure. Read more

Simone Baribeau

President Barack Obama is reported to be looking at San Francisco Fed president Janet Yellen to fill Donald Kohn’s vice chairman seat when he leaves this summer. So what had Ms Yellen been looking at to boost the US economy?

Housing, she said in a speech today.

Ms Yellen, San Francisco Fed president, said last year she “became hopeful that the sector would provide a significant boost to the economy this year.”

But then, she said, the market seemed to have stalled. Indeed, home sales data released earlier today and the impending end of the home buyer tax credit bode poorly for a home price bottom.

Optimism on housing is nothing new for Ms Yellen (or, as we know, other FOMC members). Read more

Simone Baribeau

Analyst reaction to reports Janet Yellen may be tapped to be Fed Vice Chairman:

Action Economics:

Outside of Boston Fed’s Rosengren and Fed Chief Bernanke himself, Yellen is one of the most dovish members on the FOMC and this would certainly raise her status as a permanent voter. Yellen has done a past stint as a governor at the Fed and returned to the SF Fed after a period as a professor of economics at U.C. Berkeley, and is very well-versed on the inner workings of the Fed.

 Read more

Simone Baribeau

On Janet Yellen potentially becoming vice chairman of the Federal Reserve

For Friday fun

Simone Baribeau

Via Reuters:

US President Barack Obama plans to nominate San Francisco Federal Reserve Bank President Janet Yellen to be vice chairman of the central bank, a source familiar with the process said on Thursday. Read more

Simone Baribeau

That other real estate market came back into the spotlight today as Chris Dodd, chairman of the Senate Banking Committee sent letters to a number of regulators, including the Federal Reserve, asking them to report on their efforts to stabilise the commercial real estate market.

By any realistic estimate, CRE has yet to finish wreaking havoc on the economy. Nearly half of CRE loans are currently “underwater” and the largest loan losses haven’t yet occurred, according to the Congressional Oversight Panel. Read more

Simone Baribeau

Janet L. Yellen, president of the Federal Reserve Bank of San Francisco, today spoke of an ‘impressive’ turn-around in GDP and said that the tide of dismal economic news ‘appears to have turned.’ But there the upbeat message of the a leading dove ended.

The annual 5.7 per cent growth in fourth quarter GDP was unlikely to be sustained, she argued.

Unfortunately, I’m not at all convinced that a V-shaped recovery is in the cards. That fourth-quarter leap in GDP overstates the underlying momentum of the recovery.

The reason for her scepticism in the sustainability of last quarter’s growth was, of course, the same as everyone else’s: most of it was due to a slowdown Read more

Current US monetary policy is likely to prove excessively inflationary for China and Hong Kong, but both countries are ‘stuck’ with the effects of Fed policy as they have pegged their currencies to the dollar.

So says Janet Yellen, San Francisco Fed chief: Read more

Krishna Guha

San Francisco Fed chief says interest rates today would be “well below this zero bound” if such a thing were possible. Her comments show that she is a very, very long way away from voting to raise rates, writes Krishna Guha of the Financial Times Read more