President Barack Obama’s nominee for Federal Reserve chair appeared before the Senate banking committee on Thursday. She mounted a vigorous defence of the Federal Reserve’s quantitative easing policy as she faced lawmakers in her first big test of political and communications skills.
Gina Chon and Shannon Bond reported from New York with James Politi in Washington.
PETER PARKS/AFP/Getty Images
Janet Yellen is soon to be the first woman to be the chair of the US Federal Reserve – the most powerful job in the world economy.
The 67-year-old was an academic for many years, and also served as chair of President Bill Clinton’s Council of Economic Advisers and president of the San Francisco Fed. She became vice-chair of the Fed in 2010 and has been the frontrunner for the chairmanship since Larry Summers rescinded his nomination.
A graduate of Brown University and Yale, she is married to the Nobel Prize-winning economist George Akerlof, and has one son.
Her track record of calling events like the housing bubble long before they occur has built her a strong fan base. We look at what’s been written about her and what that says about her likely stance as Fed chair.
By Thomas Hale
♦ The Wall Street Journal looks closely at Janet Yellen and the ‘tougher tone’ she may bring to the Fed.
♦ Meanwhile, Roger Cohen ponders Merkel’s election success and her role as the ‘great consolidator’.
♦ Iranian Qassem Suleimani, a supporter of the Assad regime in Syria, has been described as the most powerful operative in the Middle East today. The New Yorker profiles this elusive figure.
♦ The demographic for budget travel is changing – the New York Times looks at business people in hostels.
♦ Christian Caryl’s book Strange Rebels suggests that the 21st century was heavily moulded by the pivotal events of 1979. David Runciman’s review in the LRB is an exhilarating analysis of the future for progressive politics.
♦ Are the lines between the natural and artificial worlds becoming blurred? Sue Thomas expounds on the fascinating notion of technobiophilia in Aeon magazine.
♦ The New York Times looks closely at China’s forays into Central Asia, specifically their recently acquired share in Kazakhstan’s oil.
♦ Paul Mason, writing for Channel 4, weaves together Western intervention in the Middle East with the mercurial plot of Homeland.
♦ China’s political elite at the Central Party School are beginning to consider the unthinkable: the collapse of Chinese communism.
♦ Since Kenya sent troops into Somalia to fight al-Qaeda-linked jihadists in 2011, the risk of reprisal has been growing.
♦ Janet Yellen, the frontrunner to replace Ben Bernanke, is “motivated by genuine fascination with the questions she deals in” and seems to be unusually well-adjusted.
♦ Secret recordings have revealed Hosni Mubarak’s belief in far-fetched conspiracy theories and his worry that Washington was trying to oust him as president.
♦ The veteran foreign correspondent who lent credibility to a claim that Syrian rebels had admitted responsibility for the August chemical attack has denied writing the article.
♦ Vienna has adopted “gender mainstreaming” in its urban planning, to take account of how women move about within the city.
By David Gallerano
♦ Claire Jones outlines how any decision the Federal Reserve will take on tapering has implications far beyond the United States.
♦ Robin Harding takes stock of the situation regarding the nomination of the new Fed chairman. Though it seems the propitious moment for a Yellen selection, there is the chance that the White House might opt for a more thorough selection process. After all, Ben Bernanke’s appointment in 2005 did not come until late October
♦ Meanwhile, John McDermott reproaches Obama for his weak support of Lawrence Summers’ candidacy.
♦ The German elections will pave the way for a third bailout for Greece. How will the Greek economy react? Peter Spiegel outlines the most likely scenario.
♦ The Pacific Standard examines six reasons why Zambia is – and will probably remain for long time – a poor country.
Sandra Pianalto, who has served as president of the Federal Reserve Bank of Cleveland, announced she will be retiring early next year after being in the job for a decade.
Ms Pianalto’s departure may not mean too much for monetary policy. She is known for being a centrist, predictable official on the Federal Open Market Committee, backing the chairman’s view without offering positions that are either too dovish or too hawkish.
Ben Bernanke, Fed chairman, issued an effusive statement on Thursday: “Sandy has been a remarkable colleague who has made invaluable contributions to the Federal Reserve Bank of Cleveland, the Federal Reserve System, and the country. We will miss her thoughtful insights and leadership across a broad range of issues, including monetary policy, payments policy, and community development.”
♦ Barack Obama said “you would have to slice the salami very thin” to find policy differences between Lawrence Summers and Janet Yellen, who are now in the running to chair the Federal Reserve. The FT’s Robin Harding takes a look at the salami.
♦ Russia is spending $51bn on sports facilities in Sochi for the 2013 Winter Olympics, but developers fear the only winners will be friends of the Kremlin.
♦ A Nazi gaffe by Taro Aso, Shinzo Abe’s deputy premier and finance minister, is a reminder that the cultural conservatives, who dominate the ruling Liberal Democratic party, have not abandoned their revisionist dream.
♦ Tendai Biti, Zimbabwe’s finance minister, tries to find out where the busloads of voters at Mount Pleasant have come from, but the bus driver is unable to tell him.