Economists and other analysts spoke on Monday after news came that President Joe Biden had elected former Federal Reserve President Janet Yellen to head the Treasury Department.
He plans to nominate Biden Yellen, the Wall Street Journal article said, citing unnamed sources, and other news outlets reported that he was elected. If confirmed by the U.S. Senate, she will be the first woman to serve as Treasury Secretary.
Below are some initial reactions as the main U.S. stock measures are SPX
He closed with a profit on Monday after ascending to session highs when they reached the news about Yellen.
• “He is fine in the orthodoxy of the economic community, and I suspect that this fact and his knowledge will lead to a largely positive response from the financial markets. In a broader sense, based on what has been said so far, it seems that Biden is mainly choosing the hands of the old Democrats to fill key cabinet and White House positions that date back to the years of Obama (and in some cases even Clinton). Progressors had hoped to exert serious influence over the next administration, but if Biden’s personal decision so far suggests any sign, he intends to govern from what is at the center of the Democratic Party today rather than pushing the envelope to the left. “- Stephen Stanley, chief economist at Amherst Pierpont
From the MarketWatch archive, December 2018:Janet Yellen is worried about the next financial crisis
• “There’s a lot to worry about, but here’s a big thing: As a former Fed president, he has great connections around the world. In the last four years, you can begin to repair the damage done to economic diplomacy. – Michael R. Strain, Director of Economic Policy Studies, American Enterprise Institute, in tweets
• “Yellen is an excellent choice for the Minister of Finance. He was my boss when I was the Chief Chief Economist of the International Economic Advisory Council in 1998-99. The wisest boss ever! ”- Nouriel Roubini, a professor of economics at New York University, often“ Dr. Doom, ” in tweets
• “It’s great to see you have an experienced hand at @ USTreasury. Every Treasury Secretary has a learning curve (even former Fed chairs), but it’s an excellent choice. “- Tony Fratto, founder of Hamilton Place Strategies and former spokesman for the George W. Bush White House, in tweets