Five candidates are vying to take over as head of the u.s. federal Reserve : the more “dove” Janet Yellen, the current president of the Fed, at the most, ” hawk “, Kevin Warsh. A ticket is possible between a moderate and a hawk. Donald Trump should designate the president of the central bank of the United States by the 3rd of November.
At the age of 71, Janet Yellen is the candidate of continuity. This ” dove “, who advised Bill Clinton, was appointed in 2014 to the presidency of the us federal Reserve (Fed) by Barack Obama to succeed Ben Bernanke, whose she was the vice-president since 2010. His term was marked by a dilemma : how to get out of the exceptional measures decided in the wake of the 2008 crisis without breaking the economic recovery nor cause a collapse of the markets. Ms. Yellen has filled his second mission – the growth reaches 3 %, the unemployment rate is at its lowest.
In contrast, it has remained very conservative on its monetary policy, and after turning off the faucet of liquidity, it has committed, in the autumn, the weight loss program of her bank, of which the balance sheet is a mouthful of securities purchases to support the economy. Married to George Akerlof, a Nobel Prize winner of economics 2001, Ms. Yellen does not understand why inflation does not restart in spite of full employment and does not exclude the possibility that in the event of a new crisis, it is necessary to resort again to non-orthodox.
It looks like Janet Yellen, but has the advantage of being a republican. Jerome Powell, 67, is on the board of the Fed since 2012. The chances of the chair are considered to be the highest by the observers in Washington. This former sub-secretary of the Treasury in the Bush administration’s father has supported without fail the accommodative monetary policy from janet Yellen and supports a gradual return to normal policy…