Just yesterday while we were visiting cousins we remarked that it would be interesting to see where Senator Warren comes down on the issue of choosing the next Federal Reserve Chairperson. This morning The Boston Globe has two items.
The story Warren signs letter backing Yellen to lead the Fed settles the question.
Senator Elizabeth Warren on Friday urged President Obama to appoint Janet Yellen to head the Federal Reserve, choosing to back Yellen instead of her former Harvard colleague, Larry Summers.
The Boston Globe also had the column by Shirley Leung, The case for Janet Yellen as the next Fed chairman.
“So why isn’t she a shoo-in? The ‘whispering’ campaign against her among industry types has been deafening. ‘Doesn’t understand markets.’ Translation: She may not bail us out if we get into trouble again. ‘Not assertive enough.’ Translation: She won’t stand up for us against the populists who want more regulation. ‘Lacks gravitas.’ Translation: She doesn’t show up very often in the financial media.”
I had also read elsewhere how the other candidate, Larry Summers, has the ear of President Obama. I think it is quite possible that this loss of an ear to Larry Summers is one of the reasons that the President has been so ineffective in fixing our economic problems. A recalcitrant minority of Republican Senators who abuse the power of the filibuster does not help in solving our economic problems, but the President just has not seemed as if he is thoroughly convinced about the correct economic policy, himself.
On issues of policy, Janet Yellen seems to be on the correct side and Larry Summers appears to be on the wrong side. You might think this would be enough on such an important matter to make the President’s decision an easy one to make. The trouble is that the President just does not seem to know which side is the correct side. He has given too much ear to the wrong side since the day he came to office.