Obama nominates Janet L. Yellen to head Federal Reserve

President Obama on Wednesday announced what he said could be his most important economic decision, nominating Janet L. Yellen to be the first woman to head the Federal Reserve system and his independent co-steward of the American economy. He called her 'one of the nation's foremost economists and policymakers.' Senate Republicans plan to use the nomination of Yellen to lead the Federal Reserve as an opportunity to take aim at one of their favorite economic targets: the Fed's easy money policies.

Republicans have long grumbled that the central bank is playing too big of a role in the U.S. economy and that its massive economic stimulus program - known in Fed speak as quantitative easing - is a prescription for inflation straight out of a central planning playbook.


The Fed under Chairman Ben Bernanke has kept this political pressure at arm's length, but the debate over Yellen's nomination will give Republicans a chance to highlight an issue that animates conservatives across the country.

'Almost 100 percent of the focus is going to be on monetary policy,' said Sen. Bob Corker (R-Tenn.), who voted against Yellen in 2010 when she was nominated to be the Fed's vice chair, a position she currently holds. 'We have almost a $4 trillion balance sheet and you're going to be interviewing somebody to discuss how you undo the trade.'

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