First woman nominated to head Federal Reserve

Janet Yellen has been nominated by President Obama to become the next chairman of the Federal Reserve. Her nomination signifies a step towards dovish policies designed to invigorate a depressed economy.

Yellen is a proponent of the Federal Reserve’s “easy money” policy, a stimulus program established by Chairman Ben Bernanke that buys trillions of dollars in bonds in an attempt to keep inflation rates stable.

“She’s a bit more liberal. I think because the economy is recovering people are worried about her in the position,” Jaclyn Jensen, a graduate student studying economics at DePaul, said. “However, given her experience I believe she will be an asset to the Federal Reserve.”

Yellen has been vice chairwoman since 2010. A study by the Wall Street Journal found that out of the 700 predictions made by Fed policy makers from 2009 to 2012, Yellen’s were the most accurate. She scored third out of 14 for her predictions on growth and inflation, and fourth on labor forecasts.

Although Yellen will not become chairwoman until the end of Bernanke’s term in January, she has already made an impact as the first woman to be nominated in the Fed’s 100 year history. In addition to that, Yellen will be the first Democrat since Paul Volcker in 1987.

Many wonder if her position as chairwoman will encourage more young women to pursue the field of economics. According to a U.S. News and World report, 10-20 percent of male undergraduates elect economics as their major. In the classroom men outnumber women 2.5 to one, and the experience on Wall Street is similar.

Yellen intends to improve the economic state of America by easing dependence on bonds and introducing jobs.