Administration Said to Settle on No. 2 at Fed

[cory777]

Source: NY Times

By SEWELL CHAN
Published: March 12, 2010

WASHINGTON — The Obama administration has settled on Janet L. Yellen, president of the Federal Reserve Bank of San Francisco, to serve as vice chairwoman of the Federal Reserve, a senior administration official said on Thursday night.

Ms. Yellen, 63, who was chairwoman of the White House Council of Economic Advisers and a member of the Fed’s Board of Governors in the Clinton administration, was widely considered to be the front-runner for the position. She would succeed Donald L. Kohn, who intends to retire when his four-year term expires in June.

Ms. Yellen is viewed by some economists as relatively more inclined to keep interest rates low to stimulate economic growth and reduce the high rate of joblessness. The Fed now faces a tricky balancing act of trying to nudge rates up from historic lows while not choking off a recovery.

Read more: http://www.nytimes.com/2010/03/12/business/12fed.html?partner=rss&emc=rss