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White House Set To Announce Yellen Fed Nomination Tomorrow
Speaking of the (Fed) devil, it was six short hours ago that we asked:
Shouldn't Obama have nominated Yellen by now
— zerohedge (@zerohedge) October 8, 2013
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.
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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By placing an inbred with Down Syndrome in as the Fed chair, I'd say TPTB are just mocking the public now. They're thinking that if they can place an obviously retarded dimwitted person in the position they will be able to get away with anything...or they'll just throw her under the bus if they don't get away with "it".
We can all rest better knowing that the firm hand of leadership, chosen by the wise council of the electorate will choose wisely also
If she isn't a full fledged cyborg, I will toss Obummer's salad.
She and Christine LaGarde can share hair coloring tips.
They use real platinum. They ain't stupid.
Oh wait, Yellen is stupid and did not see it (financial disasters) coming.
Yes, she publicly supported Bernanke policy as the #2 but in my reading do not think she is as reckless as the Bernank was. It is possible she might see the writing on the wall and opt to throw Bernanke's legacy under the Bus down the road.
Oh well, from Daddy Bernanke to vetus mater Yellen. At least the bankers will have a large papaya breast with large nipple to suckle!!!!!!
The patsy is now in place. Commence operation SDRtakeover
I bet she is getting her nipples tweaked right now. LOL!!
I am just not so sure Yellin is another Trickle Down Reaganomics proponent like Bernanke.
Re: I am just not so sure Yellin is another Trickle Down Reaganomics proponent like Bernanke
No, i'm think more of a slightly less insane Krugman type.
can someone please explain to me why futures are spiking on this news, when this was pretty much obvious a month ago when it was reported she would be named fed chairman any time now?
Best guess is you get a pop in the am then a drift lower the rest of the day. The boyz are going to punish the SM until Boehner caves.
Ah, Pat Yellen...I find you irresistible. Am I straight, am I gay, I just don't know. I must have you.
Too soon, Dr. Krugman. Premature adulation won't impress the laddy. At least wait til your first column width appears in the NYT. That'll impress Mr Yellen, as the Spender-in-Chief is wont to call her/him.
Christ - I hope she's not sporting a power bush. I guess a landing strip would be marginally OK, but the popular shaved look is inappropriate in my estimation. Way too much information to even consider absorbing. (oh man, suddenly I don't feel so well anymore).
Mr. Banzai should do a rear guard look of her in a thong. Showing the front view in a thong is just too much to even contemplate.
At least Susan Boyle can sing.
But Susan can't print money.
Hilsenrath is probably on line shopping for strapons right now.
I for one welcome our new Munchkin overlord.
But Yancey, the story always ends badly for the wicked witch: water kills her in the end; too much liquidity, you see ;-)
It's BTFT ^ Yellin time.
Hope Ben puts some extra grease in the printing machine before he hits the road, because it's gonna need it.
With a PhD from Yale, she has taught economics at University of California, Berkeley, Harvard University and the London School of Economics,
Where all of the economists go for official indoctrination in marxist keynesianism.
Kerrching!
Williambanzai7 has a lot to work with.
OK, here's the shorthand for JY:
N!
Yell "ENN"!
Kinda like "N-factorial"...
One step closer to Zimbabwe....
...and the Third Reich.
Greenpeace is right, this time we are really going to run out of trees!
'let's get'er done, Janet-- the first words outta Schumer's piehole!'
in the mean time... inbetween time, China roles over APEC with $1T minimum free trade deals with no strings attached, leavin the Phillipines and Japan second thoughts about where their true-sun arises?
Pepe Escobar pretty much sums up this delicious pragmatic detente of economic happiness,... "Shootout at the APEC free-trade corral" by Mr. Pepe 10/8/13
http://www.atimes.com/atimes/World/WOR-03-081013.html
and a H/T to Matt (:-}) Drudge: "Roll Over Plan: Treasury Needed to Pay Off Record $7.5T in Maturing Debt in FY 2013, Issues $8.3T New Debt; Increased Net Debt $777B" by Terence P. Jeffrey 10/7/13--- confirms all that ZH's Tyler said, days ago!!! http://cnsnews.com/news/article/terence-p-jeffrey/roll-over-plan-treasury-needed-pay-record-75t-maturing-debt-fy-2013
Thankyou, Tyler
That's just a clean shaven Bernanke with a wig. WTF?!?
Is she still a member of the Lollypop Guild?
Life term member with a secret spray to scare off the flying monkeys.
Keep an eye on where Bernanke goes because someone is going to have to arrest his ass when this starts to spiral.
Wait a second!
THAT'S LLOYD BLANKFEIN WITH A WIG!
He has a bowl haircut.
She looks like a Star Trek alien. Kinda Spokish. Fitting since the Fed is from outerspace but dumber than... Maybe she's a Romulan.
What's the over-under on the Fed balance sheet by the time she leaves.
I'm calling $7.2 Trillion.
Of course, that could be after 6 months on the job, just when you thought no woman could ever outspend Kathy Lee Gifford.
over $10T because rates are going to start ramping, and she's going to have to mop all those 2's, 5's and 10's up with ever increasingly more FRNs. $10T balance sheet bitchezzzzzz!
I'm sure this Diesel Dyke Bitch will do just fine. Gay presidents like surrounding themselves by Stupid women. Nuff Said!
No one who was in power and let the first crisis happen should be in power now.
Subcommander Yellen report to the bridge.
One of these days they should consider nominating a woman.
Yellen is one of the least attractive pair of X chromosones in Washington I have seen. Wall street hookers used to be better looking. Perhaps TPTB are thinking stick a black man as president during our political decline, and an ugly woman as FED chairman as the FED declines, so that later they can blame it on those blacks and old hags thereby sparing the bankers from blame.
She's got a face only a banksta could love
A female Paul Krugman. She should be good for QE x2 or QE x3.
The same but much more.
Super-sized QE. Good for metals as she makes Bernanke look like a hawk.
Come on peeps I read all the way back down and there isn't any "tongue punch her fart box" comments????? I'm disappointed.
Is she/he/it wtf? Whatever the fuck the ugly bitch is it good for metals? I need to make some money NOW! Where do I go? AAPL? I'm already in. Gold? There, but could always use more physical. Bitcoin, FBI has a problem gettng it....WTF?
So who do you think will win "The Voice" this year?
Team Blake is pretty strong, but lots of power-house singers on Team Christina...
Easy Money for the 1%.
The new Yellen Federal Reserve Niggar Family presents
The Niggar Family http://www.youtube.com/watch?v=-I7JJChM6IQ
QE onward and upward.
So the semites continue to control our phony fiat currency that keeps the sheeple in chains of debt and the masses won't blink an eye...fucking wonderful
Conversation from Old Yeller and soon to be modernize
Arliss Coates: What's Papa gonna sell our steers for?
Travis Coates: For money, of course.
Arliss Coates: What's money?
Travis Coates: That's what you buy things with.
Arliss Coates: What do you mean by buy things?
Travis Coates: Well when you have money, you give it to people for stuff. They say you can get anything for money.
Arliss Coates: Anything? What's it look like?
Travis Coates: I never seen but one piece. A dollar bill Papa had.
Arliss Coates: What'd Papa buy with his dollar?
Travis Coates: Nothing, it wasn't no good.
Arliss Coates: But you just said you could get anything with money.
Travis Coates: Well, you can, but Papa's was Confederate.
Arliss Coates: What's Confederate money?
Travis Coates: Confederate money? Well, it's...
Arliss Coates: Well?
Travis Coates: Don't you ever run out of questions?
Yellen, Obama, congress, and all the alphabet agencies can not fix the problems they created. To see how everyday america once worked, to compare it to workers today, watch this link:
http://youtu.be/HPpTK2ezxL0
pride, skill, focus, discipline, the faces of old american values. Now we have feel good educations, pointless video game, texting, tv, entertainment, entitelment minded, loss of so much. You can see it.
Ohhh FUCK!
Dual citizen ????
Ben did it !!!!!! He got out before it collapsed.
Just look at her, you can tell she's a psychopath.
Looks like her strap on belt is too tight.....
She/He looks really pissed. Is that good or bad for US?
I hereby dub thee Bag Lady.
A new Jew, who was competing with another Jew, to replace a Jew, who replaced another Jew, who replaced a half-Jew.
Well now, it's just a matter of time before Jesse Jackson and Al Sharpton start marching in the street to protest the Fed 'scriminating n' sheeit.
Right???
Right on brotha!
I mean that just happened bc the best, most qualified men/women got the job right?? Just like in Hollywood or even the mainstrem media for that matter?
Sure it did!
Don't worry - I'm sure that the press are on the case and will clean up their dirty laundry as well as the Fed's and the other cheaters in our wonderful capitalist financial system. Yeah, right.
http://politicalticker.blogs.cnn.com/2013/10/08/senior-house-gop-source-short-term-debt-ceiling-may-be-way-out/
Washington (CNN) – The door the White House appears to have opened to a short-term debt ceiling increase may be a temporary way out of the standoff, a senior House Republican told CNN.
The Republicans may be willing to go for a short-term debt ceiling increase as long as the president agrees to use that time to negotiate, the source told CNN Chief Congressional Correspondent Dana Bash.
How long is short term?
This GOP source said maybe four to six weeks.
Still, it’s unclear whether Republicans could even get that short-term bill through the House without even a tiny concession on spending cuts from Democrats.
When President Barack Obama was asked during Tuesday's news conference whether he would be open to a short-term debt ceiling increase, he responded “absolutely.”
“I mean, what I've said is that I will talk about anything. What will happen is, we won't agree on everything. I mean, the truth is, is that the parties are pretty divided on a whole bunch of big issues right now," Obama said. "Everybody understands that."
The House GOP source said that the president’s call to Republican House Speaker John Boehner on Tuesday was a good first step – and they have to keep talking.
CNN’s Chief Political Analyst Gloria Borger reported on Saturday that a senior House Republican said one idea being considered is a six-week extension of the continuing resolution to fund the government, and the debt ceiling, to allow for time for both sides to negotiate.
Does she live in a house made of candy?
So we had two choices for the Fed, both of the Jewish faith....like the last two Fed Chairmen who drove us off a cliff....and the one before....hmmm, mabye, just maaayyyybe there might just be a little bit of nepotism going on up there at that Fed???
Not claiming conspiracy or anything, just sayin'
In any other normal world there would be questions about this, but we live in the burgeoning police-state, PC left-wing America...carry on, nothing to see here I guess??
Scratching my head as to why the press aren't asking questions!! I mean this is clear racism by the book, right?))
Good Lord Cabbage is right..she really does look like the love child of Newt and Hillary. Crikey.
Hey, I noticed that francis_sawyer was banned or at least temporarily silenced.
http://www.zerohedge.com/search/user_comments?name=francis_sawyer
Does he have a blog or some other forum on the Internet that he posts on?
Is there a place where banned ZH people go to post?
Was francis talking about the controversial Holocaust issue?
MESSAGE TO francis:
Set up an Internet site where we can read your controversial opinions.
Let us know where it is.
There should be some sort of Silk Road type academic freedom alternative to the Zero Hedge power to censor.
Give us a sign of life, francis.
she looks better than Lagarde.. me thinks
Hm, I didn't know she married to G. Akerlof . His paper from 1993 should be a reason enough for TPTB to vetoe her nomination .
WP:
"Bankruptcy for profit will occur if poor accounting, lax regulation, or low penalties for abuse give owners an incentive to pay themselves more than their firms are worth and then default on their debt obligations. Bankruptcy for profit occurs most commonly when a government guarantees a firm's debt obligations."
Jim Puplava: Janet Yellen to the Chair And Michael Woodford Is The New FED's Play Book.
Jim Puplava is talking about "FED's Big Flip Flop" in his big picture this week. He is calling for Janet Yellen to be the next Chairperson of the FED. Her dovish monetary policy will be highly beneficial for our Gold Bull. Jim sees the transition from unemployment target to the GDP based target for the FED's monetary policy. Quite surprising in its honesty were two remarks from Bernanke: about unexpected tightening effect on the markets after FED's announcement about the tapering of QE - when interest rates have almost doubled from the spring low. And Ben's admission that unemployment rate does not provide the clear employment picture and is affected the employment participation rate. Michael Woodford has become the new FED's play book after his monetary theories were widely adopted by the central banks around the world after Jackson Hole in August 2012. You can find his Bloomberg profile here. Now we have more clues to understand why Eric Sprott is selling Art in order to buy more shares of Gold and Silver mining companies. http://sufiy.blogspot.co.uk/2013/09/jim-puplava-janet-yellen-to-chair-and.html#
Today, I’m pleased to announce that my 14th choice for Fed Chair, uh, let’s just say person has accepted the nomination.
No one could be happier about having Janet Yellen in this position than my own wife Michelle, who has already emailed Janet asking her to expand the Fed Balance Sheet with three warehouses full of rhinestone studded shoes and sandals from JC Penney.
BO
Calamity Janet is here!
American Yellen and German Merkel almost look related physically, but idologically they live on opposite sides of Romulus. The FED is so far down the rabbit hole now, that it does not matter what crazy rabbit Elmer Fudd appoints.
Yes, Bill Clinton laid the groundwork for the NWO with repeal of Glass-Steagall, NAFTA and the changes to WTO that put corporations above soverign states in commercial disputes. Janet Yellen was being groomed for this role for 20 years. She may end up being the very last Fed chair when her head is chopped off when the people realize they've been turned into moron zombies like rats in a box alternately punished and rewarded to condition behavior. The URL below has a video of her speaking.
http://www.huffingtonpost.com/2013/09/17/janet-yellen-glass-steagall_n_3940730.html
Zach Carter
zach.carter@huffingtonpost.com
Janet Yellen Urged Glass-Steagall Repeal And Social Security Cuts, Supported NAFTA
Posted: 09/17/2013 11:18 am EDT | Updated: 09/17/2013 1:03 pm EDT
WASHINGTON -- Following President Barack Obama's failed effort to install his former economic adviser Larry Summers as Federal Reserve chairman, Janet Yellen, the central bank's vice chair, has emerged as the frontrunner to succeed Ben Bernanke in the Fed's top spot. Sen. Elizabeth Warren (D-Mass.) and dozens of other Democrats in both the House and Senate have endorsed Yellen to be the next Fed Chair.
While supporting Yellen has become a cause célèbre for progressives opposed to Summers' regulatory hostilities, Yellen supported a host of economic policies during the Clinton era that have since become broadly unpopular. She backed the repeal of the landmark Glass-Steagall bank reform and she supported the 1993 North American Free Trade Agreement. She also pressured the government to develop a new statistical metric intended to lower payments to senior citizens on Social Security.
These policies all enjoyed substantial support among economists during the 1990s, although many of those who endorsed them at the time have since recanted or criticized their implementation.
Yellen's reputation as a more consumer-friendly economist than Summers rests largely on her tenure as president of the San Francisco Federal Reserve during the Bush years, when she identified the emerging housing bubble and called for deploying stronger regulation to limit its damage.
But in the 1990s, Yellen and Summers both served in the Clinton administration, and pursued many of the same policies. Yellen began serving as Chair of President Bill Clinton's Council of Economic Advisers in 1997, and publicly endorsed repealing Glass-Steagall's separation between traditional bank lending and riskier securities trading during her Senate confirmation hearing. Yellen referred to deregulating banking as a way to "modernize" the financial system, and indicated that breaking down Glass-Steagall could be the beginning of a process allowing banks to merge with other commercial and industrial firms.
"I do believe it's important to modernize the financial system at this time," Yellen said in response to a question from then-Sen. Lauch Faircloth (R-N.C.). "And on the issue of commerce and banking, I would begin by saying that I am not philosophically opposed to mixing banking and commerce. On the other hand, it seems to me that we have a lot more experience and knowledge about financial activities, and that most of the synergies are probably between banking and other lines of business that are financial in nature. I would think that that's an appropriate first step."
The Senate passed the repeal of Glass-Steagall in November 1999 by an overwhelming 90 - 8 margin. By allowing traditional banks to link up with securities firms and insurance companies, the legislation has been blamed for bringing on the too-big-to-fail era. Citibank lobbied aggressively for the repeal, and merged with the Travelers insurance giant soon after the bill passed. The resulting behemoth, Citigroup, received billions in bailout funds during 2008 and 2009.
In the years since 1997, the barrier between banking and commerce has been repeatedly perforated. This year, beer brewers have accused Goldman Sachs of deliberately manipulating the physical supply of aluminum in order to rig profitable bets on securities tied to its price. In the 1990s, banks were barred from owning physical commodities.
A full transcript of Yellen's Feb. 5, 1997 confirmation hearing is available here. At the same event, Yellen endorsed establishing a new statistical metric that would allow the federal government to reduce Social Security payments over time, by revising the consumer price index, or CPI, the government's standard measurement for inflation.
"I agree with the principle that Social Security and the tax system should be appropriately indexed to take account of movements in the cost of living. I believe we need as accurate a measure as we can possibly have of the cost of living," Yellen said. "I believe that we are now obtaining broad agreement among professionals that the CPI does overstate the actual increase, properly measured, in the cost of living."
Once in office, Yellen put that belief into action, writing a letter to the Bureau of Labor Statistics encouraging it to devise a cheaper inflation metric. BLS Commissioner Katharine Abraham responded that the agency had been testing the new measure in an experimental mode, and planned to deploy it in 1998.
At the time, this new metric, known as chained CPI, was being aggressively pursued by House Speaker Newt Gingrich (R-Ga.), following then-Fed Chair Alan Greenspan's criticism of the existing cost-of-living calculations. Greenspan and other economists had argued that the consumer price index overstated cost-of-living changes by failing to calculate the way that households substitute different goods for each other when prices rise. While BLS developed the statistic, it has not been applied to Social Security. Some economists argue that a more appropriate inflation measure for Social Security would look at price changes for elderly people, and the BLS does track an experimental metric addressing inflation for older Americans. Such a metric is not useful for politicians looking to cut Social Security spending, however, as it shows that living expenses tend to go up more for older people, driven in part by health care spending.
Chained CPI has been a major point of contention in budget negotiations between Obama and congressional Republicans, with both camps alternating between supporting the measure and decrying it. Adopting Chained CPI to cut Social Security is extremely unpopular with both the general public and senior citizens.
Before Yellen joined the Clinton administration, she was a respected economist at the University of California at Berkeley. In 1993, she joined dozens of other academics in signing a letter to Clinton advocating for the North American Free Trade Agreement. The letter was signed by prominent conservative economists including Milton Friedman, but also by many economists who are now considered progressive, including Paul Krugman and former Obama adviser Christina Romer. Krugman has since expressed disappointment with some of the trade pact's effects.
"The agreement will be a net positive for the United States, both in terms of employment creation and overall economic growth," the letter reads. "Specifically, the assertions that NAFTA will spur an exodus of U.S. jobs to Mexico are without basis. Mexican trade has resulted in net job creation in the U.S. in the past, and there is no evidence that this trend will not continue when NAFTA is enacted. Moreover, beyond employment gains, and open trade relationship directly benefits all consumers."
NAFTA became the template for all U.S. trade agreements inked outside the World Trade Organization. It has been criticized for its weak labor, consumer and environmental protections, which encourage companies to move jobs and operations to countries with lower regulatory standards. NAFTA also gave corporations the political power to directly challenge a nation's laws and regulations before an international tribunal. This marked a departure from WTO treaties, where only sovereign nations -- not corporations -- were permitted to challenge each other's regulatory regimes.