“She has proven through her extensive and impressive record in public service and academia that she is most qualified to be the next chair,” Sen. Tim Johnson (D-S.D.) said Monday. “Americans should feel reassured that we will have her at the helm of the Fed as our nation continues to recover from the Great Recession.”
Yellen will take office while the Fed is at a crossroads. Over the past five years, it has pumped trillions of dollars into the economy through bond purchases to lower borrowing costs for consumers and businesses and boost the recovery. Now, it is starting to scale back that support — a delicate task that risks jeopardizing the economy’s progress. A wrong move could also send Wall Street into panic mode.