Tags: Yellen | consensual | Fed | Bernanke

WSJ: Yellen Pursues Consensual Strategy Similar to Bernanke's

By    |   Monday, 15 September 2014 11:32 AM

While many monetary policy experts feared that Janet Yellen would play the role of ideologue as Federal Reserve Chairman, shoving her dovishness down the throats of fellow Fed policymakers, that hasn't turned out to be the case at all.

Rather, she has copied the consensual approach of her predecessor Ben Bernanke, The Wall Street Journal reports. It interviewed 20 officials who have worked closely with Yellen.

"She learned a lot from him about consensus-building on the committee and has followed his style," James Bullard, president of the St. Louis Fed, who is centrist to hawkish on policy, told the paper.

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Richard Fisher, president of the Dallas Fed who is considered a policy hawk, said in last month that he felt "very listened-to by Janet."

A key test of where the Fed stands will come at its two-day meeting that ends Wednesday.

Policymakers are reportedly discussing whether to jettison the words "considerable time" from recent policy statements that have said "it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends."

The central bank has kept its fed funds target at a record low of zero to 0.25 percent since December 2008.

Economists' predictions on when the Fed will start raising rates range from the second quarter of next year to 2016.

Recent signs of economic strength have led Bank of America economists to advance their forecast of the Fed's first rate hike to June 2015 from September 2015, MarketWatch reports.

The BofA analysts cited stronger-than-expected economic growth and inflation. GDP expanded 4.2 percent in the second quarter.

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While many monetary policy experts feared that Janet Yellen would play the role of ideologue as Federal Reserve Chairman, shoving her dovishness down the throats of fellow Fed policymakers, that hasn't turned out to be the case at all.
Yellen, consensual, Fed, Bernanke
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2014-32-15
Monday, 15 September 2014 11:32 AM
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