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Janet Yellen to Head the Fed
Janet Yellen, affectionately nick-named "She Devil" by Washington and Wall Street, has finally been nominated by the President as Fed Chairman. Her nomination had been in doubt until Lawrence Summers withdrew from consideration. Wall Street gets the Chairman they want—the one with a decade of Fed experience and the one most likely to continue Bernanke’s policies. She spent time in the Fed with the Maestro, Alan Greenspan. She has hopefully learned to deal with a crisis aggressively and to take actions and make statements that are credible, not like the mixed messages we received for the past six months regarding QE tapering. I feel bad for Ben Bernanke; he will not get to finish what he started. When normal recovery finally arrives, She Devil will get the credit. If all goes well, she will take over as Fed Chairman at the beginning of February, 2014.
But it will not be all smooth sailing for our favorite dove. She will inevitably face crisis and have to deal with it decisively. Greenspan faced the 1987 stock market crash when he was new and in the late 1990s, faced the Asian currency crisis and the collapse of Long Term Capital Management, and the stock market crash of 2000. Bernanke, as we all remember well, faced the bursting of the housing market bubble and the 2008 financial market crisis with the Lehman Brothers bankruptcy. We must believe that the toughness implied by her nickname will guide her through trouble.
Only time will tell how this will affect your bottom line.
Dorothy Jaworski has worked at large and small banks for over 30 years; much of that time has been spent in investment portfolio management, risk management, and financial analysis. Dorothy has been with First Federal of Bucks County since November, 2004. First Federal of Bucks County www.firstfedbucks.com. 215-788-3344