Senate Banking approves Janet Yellen nomination - Politico

“Dr. Yellen is a model candidate for chair of the Fed,” Senate Banking Committee Chairman Tim Johnson (D-S.D.) said. “She has devoted a large portion of her professional and academic career to studying the labor market, unemployment, monetary policy and the economy.”

Republicans have used Yellen’s nomination to bash the Fed’s easy money policies, in particular, its program to buy $85 billion a month in Treasury and mortgage bonds to keep long-term interest rates low.

”The long-term costs of these policies are unclear and frankly worrisome,” said Sen. Mike Crapo of Idaho, the panel’s top Republican. “The immediate benefits are questionable and markets have become far too reliant on monetary stimulus.”

Yellen had been expected to win enough Republican support to get the needed 60 votes, but that issue become moot on Thursday when the Senate voted to change chamber rules so that now only a simple majority will be needed to confirm presidential nominees.

Yellen “understands that the Fed should be playing an active role in supervising and regulating the largest financial institutions, and that the Fed’s supervisory responsibilities are just as important as its monetary policy responsibilities,” said Sen. Elizabeth Warren (D-Mass.).

 

Janet Yellen nomination approved by banking panel

The Senate Banking Committee on a strong bipartisan vote of 14 to 8 Thursday approved the nomination of Federal Reserve Vice Chairman Janet Yellen to become the next head of the central bank.

Ms. Yellen would be the first woman chairman of the Fed in its 100-year history. 

“Dr. Yellen has the experience and intellect that is necessary to lead our central bank,” said Sen. Heidi Heitkamp, North Dakota Democrat and one of the many Democrats on the committee who enthusiastically supported the nomination. “Today’s bipartisan vote reinforces the strong support for Dr. Yellen’s nomination and helps propel her toward a successful vote by the full Senate. 

The support of several committee Republicans came as somewhat of a surprise, since most are critical of the Fed’s easy money policies under current Chairman Ben S. Bernanke, policies Ms. Yellen has pledged to continue.

Still, her overwhelmingly strong qualifications — with many of years of experience in the top ranks of economic policy both at the Fed and the White House — persuaded some that she would be a good choice for what has been called the nation’s second most powerful office.

“I would prefer to see someone who held a more modest view regarding the limits of monetary policy on our economy,” said Sen. Bob Corker, Tennessee Republican and one GOP senator who voted for Ms. Yellen.

After talking with the nominee, Mr. Corker said he thinks Ms. Yellen understood the dangers of holding interest rates too low for too long, and will move as quickly as she can to normalize rates when the economy is in full recovery.

“In the end, I do believe she has the qualifications necessary to be the Fed chairman,” he said.

Mr. Corker was joined by committee Republicans Sens. Tom Coburn of Oklahoma and Mark Kirk of Illinois in voting for Ms. Yellen. Sen. Joe Manchin III, West Virginia Democrat, was the only Democrat on the panel who opposed her.