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Obama: Nomination of Fed chairman hinged on understanding of Fed’s dual mandate

Barack Obama

Barack Obama

President Obama said on Wednesday that, in choosing Janet Yellen to replace outgoing Federal Reserve Chairman Ben Bernanke, the most important factor was her understanding of the Fed’s dual mandate: manage inflation while creating jobs.

“Janet is committed to both sides of the Fed’s dual mandate, and she understands the necessity of a stable financial system where we move ahead with the reforms that we’ve begun — to protect consumers, to ensure that no institution is too big to fail, and to make sure that taxpayers are never again left holding the bag because of the mistakes of the reckless few,” Obama said.

Yellen, who has served as the vice chairman of the central bank since 2010, has supported the Fed’s experimental bond-buying programs and helped drive a new strategy adopted last year to commit the central bank to inflation and employment goals. She was also among the first policymakers to warn of the worsening housing bubble that contributed to the 2008 financial crisis, Bloomberg reports.

“So, Janet, I thank you for taking on this new assignment,” Obama said. “And given the urgent economic challenges facing our nation, I urge the Senate to confirm Janet without delay. I am absolutely confident that she will be an exceptional chair of the Federal Reserve.”

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