She is comparatively average on many subjects, together with commerce. Mr. Akerlof recalled in a biographical note in 2001 that when he met her: “Not solely did our personalities mesh completely, however now we have additionally at all times been in all however good settlement about macroeconomics. Our lone disagreement is that she is a little more supportive of free commerce than I.”
Ms. Yellen has been a serious affect on main officers on the Fed. John C. Williams, who labored for her in San Francisco, now leads the Federal Reserve Financial institution of New York. Mary C. Daly, who now leads the San Francisco Fed, cites Ms. Yellen as a key mentor.
That, together with Ms. Yellen’s expertise working with Mr. Powell, might assist facilitate the form of shut relationship wanted between the Fed and Treasury, that are collaborating on quite a lot of disaster response applications.
Henry M. Paulson Jr., who served as Treasury secretary below President George W. Bush, praised the choice. He mentioned Ms. Yellen “could have a troublesome job forward of her, however she has the expertise, expertise, credibility and relationships with members of Congress on either side of the aisle to make an actual distinction.”
Whereas the opposite main contenders for the job additionally had intensive expertise that spanned fiscal and financial coverage, Ms. Yellen was seen as nicely positioned to make it by Senate affirmation, even when Republicans keep management of the chamber.
Lael Brainard, one other high candidate for the function, is the one remaining Fed governor from the Democratic Occasion on the seven-member board, which at present has two open slots. She may need been troublesome to switch on the Fed: Nominees have been arduous to verify over the previous decade, and the Senate could stay below Republican management.
Whereas main the Fed, Ms. Yellen at instances had a testy relationship with congressional Republicans. In a single occasion, Consultant Mick Mulvaney, then a South Carolina Republican, mentioned Ms. Yellen was overstepping her boundaries by speaking about inequality.