White House Set To Announce Yellen Fed Nomination Tomorrow

Tyler Durden's picture

Speaking of the (Fed) devil, it was six short hours ago that we asked:

The answer has just presented itself and all the histrionics over the next Fed chairman, pardon chairwoman, choice are over. WSJ reports that Obama is set to announce Mr., pardon Mrs Janet Yellen as Bernanke's replacement tomorrow at 3 pm at the White House. "The nomination would conclude a long and unusually public debate about Mr. Obama's choice which started last June when he said that Ben Bernanke wouldn't be staying in the post after his term ends in January. Mr. Obama gave serious consideration to his former economic adviser, Lawrence Summers, who pulled out in September after facing resistance from Democrats in the Senate."

However, while a Yellen announcement, fully priced in, in a normal environment would still have been good for at least a 10-20 S&P point bounce, with the debt ceiling showdown the far more immediate concern, the choice of the Chairwoman may not be the buying catalyst that it would have otherwise been.

From the WSJ:

The announcement comes in the middle of a building political crisis in Washington which complicates the backdrop for Senate confirmation hearings. The federal government has been partially shut since Oct. 1, after its spending authority expired. The U.S. Treasury estimates that by Oct. 17 it will be low on cash because a federal debt ceiling prevents it from borrowing more money.

 

Ms. Yellen's nomination would be subject to Senate confirmation amid angry squabbling between Democrats and Republicans over fiscal issues. The timetable for hearings and a vote is uncertain.

 

Ms. Yellen has been the Fed's second-in-command since 2010. From that perch, she's been a close adviser to Mr. Bernanke as he devised new easy money programs aimed at supporting economic growth.

 

Her nomination would mean the Fed is unlikely to make any unusual lurches in its interest-rate decisions in the near-term. But she would have a number of vexing challenges almost immediately.

Just in case there is still any confusion about Yellen's ability to peer into the future, we once again present her own words confirming otherwise. From the NYT which captured a moment of a 2010 FCIC hearing:

Ms. Yellen told the Financial Crisis Inquiry Commission in 2010 that she and other San Francisco Fed officials pressed Washington for new guidance, sharing the problems they were seeing. But Ms. Yellen did not raise those concerns publicly, and she said that she had not explored the San Francisco Fed’s ability to act unilaterally, taking the view that it had to do what Washington said.

 

For my own part,” Ms. Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure.

And just like getting the president it richly deserves, the US is about to have a Fed chairman who will continue doing much more of the same: pillaging the middle class, and injecting trillions in "wealth effects" straight into the offshore bank accounts of the uberwealthy, while pushing the S&P to fresh all time record highs.

Finally, via Reuters, five facts, for those interested, about the new Fed chairman:

Following are five key facts about Yellen:

- If confirmed by the Senate, Yellen, 67, would be first woman to head the U.S. Federal Reserve, and the second woman to lead a central bank for a developed nation. The first was Elvira Nabiullina, who was appointed to lead Russia's central bank in June.

- She is seen as a dove on monetary policy, favoring strategies that bring down unemployment even at the risk of driving inflation higher. She has said she does not believe there is often conflict between the two Fed goals. "When the goals conflict and it comes to calling for tough trade-offs, to me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target," she said in 1995.

- She has extensive policymaking experience. Before her appointment as Fed vice chair in 2010, Yellen took part in U.S. monetary policymaking as president of the San Francisco Federal Reserve Bank from 2004-2010, and as a governor on the Fed board from 1994 to 1997. She also chaired President Bill Clinton's Council of Economic Advisors from 1997 to 1999.

- Yellen is a sharp and respected economist. With a PhD from Yale, she has taught economics at University of California, Berkeley, Harvard University and the London School of Economics, and she has published research on topics as disparate as youth gangs, single mothers, optimal monetary policy, wage and price rigidity, and trade.

- Economics saturates her personal life as well. She is married to, and has co-authored a number of papers with, Nobel Prize-winning economist George Akerlof, whom she met in the fall of 1977 when they were both economists at the Fed board. They married the following June and left the Fed to teach at the London School of Economics. Their only child, now a university economics professor, knew he wanted to go into economics by the time he was 13.

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One And Only's picture

Government shutdown; Yellen gettin turnt up.

Spoos at highs by tomorrow as Congress is now irrelevant.

VD's picture

Yellin will make Bernanke look like a eunuch if her psychotic ass gets to print money to infinity plus. clueless dangerous sociopath PhDz.

ACP's picture

FUCK YOU YELLEN!

AND FUCK YOU BERSPANKE AS THE DOOR HITS YOUR ASS ON THE WAY OUT!

duo's picture

Truckers should celebrate by not delivering ANYTHING inside the Beltway for 3 days.  Let's see how the parasites get by without the plebes delivering their food and Chinese-made crap.

flacon's picture

Truckers are Unions, and Unions are in love with the government. 

kaiserhoff's picture

I toldja, all through that 100 to one rubbish.

With Barry, there is always extra credit for bat shit crazy.

Pladizow's picture

Wall St. needs it's crack!

Nomination will provide it.

Did'nt Yellen say she would vote for negative nominal rates?

King_of_simpletons's picture

Definitely the end of a great era in capitalism and for this country. Why stop at defaulting ? Let's have some fun by going bipolar as well.

knukles's picture

How can he nominate her?
Doesn't he know the gubamint's shut down?
He closed the parks and blocked off private property with a buncha goons?
So how can this be, Uncle Lloyd?
Uncle Jamie?
Uncle Smelly?

FOREWARD!  FREE MONEY 4EVAH!

FL_Conservative's picture

What a LOOKER!!   Someone pass me a bag and a bottle of JD QUICK!!  I'm feeling "some emotion" comin' on!

knukles's picture

To borrow Time magazine's old cover....

The Yetti Who Saved the World

FL_Conservative's picture

She actually looks more like Yoda, but not nearly as intelligent.

nope-1004's picture

"When I was a little girl, I had a pony."

 

WonderDawg's picture

Come on, you guys. Nothing will change. It will be exactly the same trajectory as it would be with anyone else in the chair. She won't be making policy, just like Bernanke didn't make policy. She'll be following orders just like those before her. Y'all know better than to get caught up in the theatrics.

Keyser's picture

It's a Buzz Lightyear moment. 

QE...FROM HERE...TO INFINITY...

TeamDepends's picture

Ha, you're all assuming she's a she.

dfwpike's picture

Everybody wants to rule the world

buckethead's picture

Good link. I'm still waiting for her to invoke the name "Ditka".

Will see if I can tolerate the full hour.

overmedicatedundersexed's picture

what's all this yellen about, just stop your yell in.

buyingsterling's picture

Does the fact that she's female and jewish guarantee a rubber stamp? Maybe in the old days, when we weren't a serious country dedicated to getting at the root of our problems.

/S  A  R  C

eatthebanksters's picture

Oil up those presses and make sure you have enough plates....more than a few are going to be orn out on this run of greenbacks....

Cult_of_Reason's picture

Holy Shit!

She is a Bernanke on steroids with super uber easy money printing diarrhea.

localsavage's picture

Damn, I thought that they were going with a Catholic this time.

knukles's picture

"With a name like Yellen, it's got to be good!"
    -Heckyl and Jeckyl, 1913

Magpie Perceptions Management:

http://www.youtube.com/watch?v=tq7M7g9cl_8

Enjoy

The Gooch's picture

Too many Janets spoil the Republic.

They're all so handsome!

Fuck You Uncle Janet II !

Also, Guy Ritchie ripped Heckle and Jekyll off.

http://www.youtube.com/watch?v=wSodvRnD3Qc

Edit: my 4 year old just pointed at Janet and asked "Who's he?"

Perfect!

matt atsinger's picture

Too funny, maybe a Hindu, Muslim or Buddist? Surprise Surprise another Heb

Sean7k's picture

You expected something other than a zionist in charge of the government? :)

Jack Jew and hellin' Yellen, putting the screws to goyim everywhere.

W.M. Worry's picture

On what planet? Here on Earth I would be surprised if 10% of truckers were unionized.

max2205's picture

Good for 7 es points... Ppt couldn't even do that...wtf Ben?

CvlDobd's picture

This will be quite bullish for the economy!

I, and many like me, will now have to buy a new bumper stick for my truck to replace the one that says "If you don't know who Ben Bernanke is, you're part of the problem." Surely this influx of cash will help spike M2 velocity.

 

 

AllWorkedUp's picture

Will gold actually go up on this news?

buyingsterling's picture

Gold no longer reacts to news. Or at least not for more than 24 hours, until the bankster fucks can get a handle on it.

bchbum's picture

I will have one that says:  "I be yellin' for Yellin"

lolmao500's picture

What about 3 years?

remain calm's picture

Full Speed ahaed to default.

Nothing but the truth.'s picture

 This Yellin women reminds me of Susan Boyle - the old lady that won a pop idols contest in Britain.

Dr. No's picture

I junked you.  Ms. Susan Boyle has a lovely voice and although I never met her, seems like a respectable woman.  Yellen!?  How dare you compare Yellen to Boyle!

Wahooo's picture

I bet Yellen can sing, too, like that fat lady she is.

Kirk2NCC1701's picture

Yellen (Slavic) = Stag (English) = Hirsch (German/Yiddish). 

Yellen:  "Hirsch heiss ich"  (Sounds like "Hier scheiss ich").  - Old German joke, but new to 'mericans.

Jay Gould Esq.'s picture

Yellen ?

That photo is of Larry Summers in a grey bob wig and lipstick.

knukles's picture

That's unfair to her.
She's not ugly enough to be Larry Summers in Drag.
OMG.... just thinking about them pics of JEdgar in a dress....

Leadership.