Ranking Member Waters Leads House Democrats in Supporting Janet Yellen for Federal Reserve Chairman
Financial Services Committee Ranking Member Maxine Waters, today joined by 37 of her fellow Democrats, delivered a letter urging President Obama to nominate Janet Yellen, current Vice Chairman of the Board of Governors of the Federal Reserve System, to replace Ben Bernanke as Chairman of the Federal Reserve when his term expires.
The letter notes that Vice Chairman Yellen has “demonstrated a unique understanding of the impact of the Federal Reserve’s policies on the middle-class” and that, “during the subprime bubble, at a time when many economists were optimistic about unprecedented growth in the economy, she saw the bubble for what it was and predicted disaster in the banking system.”
Given the continued importance that the Federal Reserve’s monetary policy will have on our nation’s economic recovery, and the increased regulatory responsibility provided to the Federal Reserve under the Wall Street Reform Act, it is crucial to have a thoughtful and deliberate leader succeed Mr. Bernanke as Chairman of the Board. Vice Chairman Yellen’s institutional knowledge of the Fed and her working relationships with her colleagues, make her the ideal candidate to fill this position.
Signers of the letter included Representatives Maxine Waters, Diana DeGette, Grace F. Napolitano, Anna G. Eshoo, Betty McCollum, Barbara Lee, Doris O. Matsui, Carol Shea-Porter, Corrine Brown, Donna F. Edwards, Eddie Bernice Johnson, Eleanor Holmes Norton, Frederica S. Wilson, Gloria Negrete McLeod, Gwen Moore, Jackie Speier, Janice D. Schakowsky, Joyce Beatty, Judy Chu, Kathy Castor, Linda Sánchez, Lois Frankel, Loretta Sanchez, Lousie McIntosh Slaughter, Marcia L. Fudge, Marcy Kaptur, Michelle Lujan Grisham, Nydia M. Velázquez, Robin Kelly, Rosa L. DeLauro, Sheila Jackson Lee, Susan A. Davis, Tulsi Gabbard, Zoe Lofgren, Yvette D. Clarke, Janice Hahn, Lucille Roybal-Allard and Julia Brownley.
July 31, 2013
President Barack Obama
As you consider possible candidates to replace the esteemed Ben Bernanke as Chairman of the Board of Governors of the Federal Reserve, we strongly encourage you to consider current Board Vice Chairman Janet Yellen for this important position. In her tenure on the board, Vice Chairman Yellen has served excellently in both her duties as a regulator of America’s financial institutions and as a steward of our nation’s monetary policy. Her institutional knowledge and working relationships with current Board members would provide for a smooth transition at a time when financial markets and middle class Americans are counting on the Federal Open Markets Committee to demonstrate thoughtful and deliberate leadership to steer our economy on the road to a full economic recovery.
Vice Chairman Yellen’s academic resume is impressive. She graduated Summa Cum Laude from Brown University with a degree in economics and earned a doctorate in Economics from Yale University. She has lectured at Harvard University, the University of California at Berkley and the London School of Economics. In addition to her academic work, she served the public as Chair of President Clinton’s Council of Economic Advisers and has worked for the Federal Reserve in several capacities, including as Chief Executive of the Federal Reserve Bank of San Francisco and current Vice Chair of the Board.
Doctor Yellen has demonstrated a unique understanding of the impact of the Federal Reserve’s policies on the middle class, with a critical focus on the crucial balance of the mandate between stable prices and low unemployment. During the subprime bubble, at a time when many economists were optimistic about unprecedented growth in the economy, she saw the bubble for what it was and predicted disaster in the banking system.
Just as importantly, she has demonstrated an understanding of the impact of the financial crisis on average Americans and the urgent need to implement financial reform quickly in order to prevent another meltdown. Her leadership on the Board and willingness to work with industry stakeholders, other prudential regulators, and consumer advocates to establish effective and workable regulations has improved market stability while ensuring that credit remains available to consumers and small businesses in this challenging economic climate.
For these reasons, we request that you nominate Vice Chairman Yellen to succeed Chairman Bernanke. We are confident that she is the best choice to lead the Board as it continues to ensure the growth and stability of the American economy for the benefit of all.