Oh yes, that is incoming actually, Ben Bernanke is still the Fed’s Chairman, at least until the end of this month that is.
Okay now, being the Vice-Chair of the Federal Reserve since 2010, Janet Yellen obviously had a foot to the Chair’s office; and last January 6, the U.S. Senate finally confirmed her nomination as Chairwoman for the Federal Reserve Board of Governors, the first woman to do it.
As AFL-CIO President Richard Trumka puts it, Yellen has finally punched through the glass ceiling of the Fed – a barrier that has kept women from the most powerful jobs in the country.
Indeed. But wait. Not to be a “kill-joy” but… how many women are interested in finance really? That’s the key. Besides, even Yellen has said it, “I’ve had a lot of opportunities in my life. I don’t feel that I’ve faced discrimination. I’ve had every chance to succeed and more, and I think that’s what all women should have.”
If this is the case then it’s a question of consummating on opportunities rather than the lack of it.
In Yellen’s case, before becoming Fed’s number 2, she served as the president of San Francisco Federal Reserve Bank from 2004 to 2010 and was a member of the Fed’s board from 1994 to 1997. Not to mention that she also assisted President Clinton as the Chair for the Council of Economic Advisers from 1997 to 1999.
So as we can see, she did get her chances. To make things clear, lack of opportunities only mean that even with good qualifications or promising abilities, one is not considered for the position or association to the extent that she may not have been invited to the group, or for an interview – whichever the case may be.
Now, though Wall Street considers her as a “dove” as she is more worried with unemployment than with inflation, Yellen believes in the modern version of the Phillips curve. She emphasizes that an increase in output would in fact happen if inflation is allowed to rise every now and then; and if you try to reduce inflation, each percentage point results in a 4.4 percent GDP loss. Therefore, such rise actually leans toward a “wise and humane policy.”
This is what truly makes her competent. Understanding what would really work. And that’s great use of imagination.
What’s your take?