Janet Yellen announces that she will leave the Federal reserve when she finishes her term as president next February. The Economist had the option to follow as governor once the witness was given to Jerome Powell, the nominee by Donald Trump to lead the most powerful central bank in the world. The Republican will therefore have another vacancy to cover in the monetary authority.
More information Jerome Powell will be the chairman of the reserve Federal, the most powerful central bank in the world
Yellen argues that the strength of the economy justifies rising rates
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The mandate of Governor of Yellen did not expire until the end of January 2024. In the letter that led Trump announcing his decision, he says the financial system is now “much stronger” than before the outbreak of the crisis and better prepared to cope with future episodes of instability. It also cites the “substantial improvement” recorded by the economy since the crisis.
Yellen, 71 years old, was the first woman to lead the Fed and is considered as a battery architect of exceptional measures that were designed over the last 10 years to sustain the financial system after the outbreak of the mortgage crisis. During the four years at the head of the central bank, it began the process of gradual and progressive withdrawal of stimulus to the economy.
Just two years ago, it started to raise interest rates. And last October began to detach from the debt assets that was accumulating during the crisis, which amounts to 4.5 trillion dollars. Janet Yellen was nominated by Democrat Barack Obama. Jerome Powell, his successor, closely supported his strategy. However, it has a more favorable profile to financial deregulation.