On the 6th January Janet Yellen was approved to become the chair of the Federal Reserve. The candidate offered and approved by president Obama and his administration received 56 votes from the senators, leaving the opposition with humble and not crucial 26. Most of her opponents are Republicans, but the Senate is controlled by the Democrats supporting the choice.
The most dissatisfied proved to be the Senators from the state Texas - Ted Cruz and John Cornyn. Both have criticized Yellen back in October, when she first was named as a potential personality for the job. On the 9th October Sen. Cornyn allowed to comment the situation as following:
“Ms. Yellen subscribes to a liberal school of thought that the best way to handle our nation’s fiscal challenges is to throw more money at them”.
Now both of them criticize the plans of the new chair to continue the current policy and emit more money physically. It seems to be a support for the Wall Street and other big players of the finance, but definitely will lead to increase inflation and complications of the ordinary people. Being a replacement for Ben Bernanke she is going to contribute to the same activities started by him. She sees among her tasks the decrease of unemployment and strengthening of financial regulations.
“Printing money by the trillions is dangerous, and working people need real economic growth to get their lives back on track,” were the words of Cruz after the vote. “Janet Yellen has said she intends to continue current Fed policy, which may help Wall Street but is leaving Main Street with higher prices for gas and food, near-zero interest rates for savers, and stagnation for small businesses that aren’t growing or hiring.”
The current experience of Ms. Yellen seems to be sophisticated for the position as before she was the vice chair of the nation’s central bank. Her service record includes work at the Fed’s board, the Clinton administration’s Council of Economic Advisers and also she has taught economics at the University of California at Berkeley.