WASHINGTON, Oct. 9 – Janet Yellen, now vice-chair of the Federal Reserve, has been selected by President Obama to lead the Fed. She is said to be a “dove,” more concerned with alleviating unemployment than holding the line on inflation.
Analysts at the Competitive Enterprise Institute offered these thoughts on Yellen:
Said John Berlau, Senior Fellow For Finance And Access to Capital: “Ironically, for all of Larry Summers' supposed ties to Wall Street, Janet Yellen has always been Wall Street's favorite because of her firm commitment to quantitative easing. Wall Street loves quantitative easing much more than it dislikes regulation. The primary dealers of Wall Street directly benefit from access to the cheap money from the Fed that causes inflation by the time it gets to Main Street.”
Said Bill Frezza, CEI Warren T. Brookes Journalism Fellow and Fellow In Technology and Entrepreneurship: Professor Yellen is the minimum-controversy, status quo choice most likely to leave the Fed on autopilot as it pursues its course of fiat currency destruction. It’s a testament to the nature of our times that both leftists and Wall Street prefer not to have a Fed chief dedicated first and foremost to preserving the value of the dollar. This implies that the devastating impact of QE money printing and Zero Interest Rate Policy on savers, investors and pension funds will continue until the inevitable double-digit inflation becomes so severe even the Bureau of Economic Analysis can’t hide it with its massaged figures. Putting off the day of reckoning is always the first choice of our dysfunctional political system, which will only make the eventual crisis even worse.