Janet Yellen, future Treasury secretary to President Joe Biden

The former Fed boss is respected by conservatives and well known in financial markets.

From our correspondent in Washington

The likely selection of Janet Yellen, by President-elect Joe Biden, to head the Treasury is. The winner of the US presidential election should officially announce this choice for this key position in the development and implementation of his future economic policy in the next few hours. The Secretary of the Treasury in a US presidential cabinet is the equivalent of a Minister of Economy and Finance.

As the US economy threatens to contract again as a result of re-containment measures in many states, Joe Biden understood that he needed experienced and efficient people in his office quickly.

Janet Yellen will probably be quickly confirmed by the Senate, where her relations with many elected Republicans are good. This credit, as well as her long experience as a central banker, will be essential for her to renegotiate this winter a plan to support the economy to help the United States overcome the devastating effects of containment and the pandemic.

«I have no doubts about Janet Yellen’s ability to provide the stability we need to promote an economy that works for everyone, especially in these difficult times.Declared Gary Cohn, Republican, former economic adviser to Donald Trump, architect of the tax cuts adopted at the start of the outgoing president’s mandate.

The new upper house, which is due to sit from the beginning of January, and after the second round of senatorial elections in Georgia, has a good chance of being dominated by conservatives. If Joe Biden had chosen a more marked personality on the left, he would have immediately encountered strong opposition from senators, skeptical of increased public spending and new taxes.

Head of the Fed from 2014 to 2018, under Obama

Often referred to as “great lady in a small bodyJanet Yellen, 74, is well known in financial and political circles for having led the Federal Reserve from 2014 to 2018 under Barack Obama. She previously served as President of the San Francisco Fed. Wife of Nobel Laureate in Economics, George Akerlof, she spent most of her career as an economist at the Fed, before being recruited by President Clinton in 1997 as an economic advisor.

Holder of a doctorate in economics from Yale University, disciple of James Tobin, a Keynesian economist in favor of an important role of state regulation in the economy, Janet Yellen is a native of Brooklyn, which she has retained. the accent.

Her long experience as a central banker, and her good relations with the current Fed boss, will also be very useful to the future administration. , to withdraw from the Fed 70 billion dollars of guarantees supposed to support possible exceptional interventions of the central bank on the markets of credit to the local communities and to the companies, created an unexpected unease between the central bank and the executive power, with a time when Congress is also unable to agree on the terms of a new emergency plan to help the unemployed and struggling businesses.