Are Spring Doves Flocking to the Fed?

J.D. Foster / March 15, 2010

The White House has indicated it intends to nominate San Francisco Federal Reserve Bank President Janet Yellen as Vice-Chairman of the Federal Reserve Board in Washington.

The White House has said the top candidates for the two remaining Board slots are the relatively unknown attorney Sarah Raskin, Maryland’s Commissioner on Financial Regulation, and Peter Diamond, a well-known Social Security specialist from MIT.

Yellen’s appointment is logical. A highly regarded macroeconomist who previously served as a member on the central bank’s board she is expected to perform the traditional roles of the Fed Vice-Chair representing the Board at numerous international fora and more importantly watching the President’s back as the Fed balances a desire to see the unemployment fall on the one hand and inflation remain contained on the other. (more…)