Joe Biden to choose Federal Reserve Chairwoman Janet Yellen as Treasury secretary

Andrew Cummings
November 24, 2020

Yellen declined to comment for this story.

Yellen enjoys a close working relationship with Jerome Powell, who succeeded her as Fed chair, something that would likely improve coordination between the Fed and the Treasury and perhaps result in additional support for the economy. "But certainly, the economic recovery is going to be the most important thing she does".

"If confirmed by the Senate, Ms. Yellen would become the first woman to hold the job".

Yellen broke barriers when former president Barack Obama nominated her to serve as Fed chair in 2014, a position President Donald Trump ousted her from four years later.

Since leaving the post, Ms Yellen has spoken out about the need for Washington to do more to shield the USA economy from the impact of the coronavirus pandemic.

With Democrats having only a slim possibility of winning a US Senate majority in two Georgia runoffs in January, Yellen faces tough negotiations with Republicans to try to push Biden's agenda, includes raising taxes on the wealthy and investing trillions of dollars in infrastructure, education and fighting climate change. "The economy needs the spending", Ms Yellen said on 28 September.

"She knows how to build consensus. She's no shrinking violet", said Julia Coronado, president of MacroPolicy Perspectives and a former Fed economist who worked with Yellen.

Investors see Yellen as a force for more fiscal action to combat the economic crisis unleashed by the COVID-19 pandemic, and as someone in a strong position to ensure the Treasury will continue to work closely with the Fed.

The Dow Jones Industrial Average rose 354.88 points, or 1.21%, to 29,618.36, the S&P 500 gained 23.38 points, or 0.66%, to 3,580.92 and the Nasdaq Composite added 42.75 points, or 0.36%, to 11,897.72.

"The market has moved higher with confidence that as we get better at treating and preventing this virus, economic activity will likely follow in the wake of that", said Art Hogan, chief market strategist at National Securities in NY. Yellen would replace current Treasury Secretary Steven Mnuchin.

President-elect Joe Biden is expected to pick Janet Yellen as his Treasury Secretary. She later became an adviser to Biden's presidential campaign in an unusual departure for a former Fed leader that thrust her into the political arena.

Other reports by iNewsToday