24 Nov 2020
Joe Biden is expected to ask former Federal Reserve Chair Janet Yellen to be U.S. Treasury Secretary, according to two Democratic sources.
A spokesman for Biden’s campaign declined to comment on the Treasury Secretary role, as did Ms Yellen.
The Financial Times reports: “Ms Yellen is a well-known quantity both nationally and internationally, given her four years at the helm of the U.S. central bank between 2014 and 2018, fitting well with Mr Biden’s drive to fill his cabinet with competent institutionalists after the disruption created by Donald Trump.”
Mohamed El-Erian, president of Queens’ College at the University of Cambridge and chief economic adviser to Allianz noted: “Janet Yellen’s appointment will be universally welcomed, and rightly so, including by economists, foreign officials and markets, all of whom regard her as a highly experienced policymaker who delivered years of stability.”
She would be the first woman to hold the post and would replace Steve Mnuchin.
In recent times, Ms Yellen has urged higher government spending to help the U.S. economy out of a severe recession triggered by the coronavirus and has frequently cited growing economic inequality in the country as a threat to America’s values and its future.
Born and raised in Brooklyn, she earned a doctorate in economics from Yale and has taught economics at the University of California, Berkeley, Harvard University and the London School of Economics.
Barack Obama chose her to succeed Ben Bernanke as Fed chair in late 2013 and said: “She doesn’t have a crystal ball, but what she does have is a keen understanding of how markets and the economy work, not just in theory but in the real world.”