Senate clears way to fill Fed chair and board seats
The Senate banking committee sent Ms Yellen's nomination to the full Senate on Thursday by a vote of 14 to eight. This margin reflected the depth of partisan divisions over the central bank's expansive five-year-old campaign to increase the pace of economic growth.
Still, Ms Yellen's confirmation - and the distinction of becoming the first woman to lead the Fed - is assured after the Senate changed its rules a few hours later to require only 51 votes to confirm most presidential nominees, meaning Ms Yellen does not need Republican support.
The full Senate is expected to vote after Thanksgiving on November 28.
The rules change will also make it easier for the White House to fill three other seats on the Fed's seven-member board of governors with nominees likely to share Ms Yellen's commitment to pressing ahead with the Fed's stimulus campaign.
Ms Yellen, 67, has been the Fed's vice-chairwoman since 2010 and has worked closely with the Fed chairman, Ben Bernanke, to design the central bank's efforts to revive the economy and reduce unemployment, and to build support for them.
Fed officials are debating how much longer to continue the most controversial portion of the stimulus program, the monthly purchase of $US85 billion ($92 billion) in Treasury and mortgage-backed securities to a pile of holdings that has ballooned to more than $US3.9 trillion since the start of the financial crisis.
Ms Yellen has continued to call privately for the Fed to press ahead with the purchases.
But there is now little doubt she will replace Mr Bernanke on February 1 to become just the fourth person to lead the Fed in 35 years.
Frequently Asked Questions about this Article…
Janet Yellen is set to become the first woman to lead the US Federal Reserve. Her confirmation is significant because it marks a historic moment for gender representation in high-level economic positions and she is expected to continue the Fed's efforts to stimulate economic growth.
The Senate changed its rules to require only 51 votes to confirm most presidential nominees, making it easier to fill vacancies on the Fed's board. This change reduces the need for bipartisan support, streamlining the confirmation process.
Janet Yellen has been a strong advocate for the Fed's stimulus campaign, working closely with outgoing Chairman Ben Bernanke. Her leadership is expected to continue focusing on economic growth and reducing unemployment through ongoing stimulus measures.
The Fed's current stimulus program involves the monthly purchase of $85 billion in Treasury and mortgage-backed securities. This program is controversial due to its scale and the debate over how long it should continue, given its impact on the economy and financial markets.
The full Senate is expected to vote on Janet Yellen's confirmation after Thanksgiving, on November 28. This vote will likely confirm her as the next Fed Chair.
The Fed's stimulus program aims to boost economic growth, which can positively impact stock markets and investment portfolios. However, it also raises concerns about inflation and long-term financial stability, which investors should consider.
There are three vacancies on the Fed's seven-member board of governors. Filling these seats is significant because it allows for a full board to support and implement the Fed's economic policies effectively.
As the Fed's vice-chairwoman since 2010, Janet Yellen has been instrumental in designing and supporting the central bank's efforts to revive the economy and reduce unemployment. Her experience and commitment to these goals are expected to continue as she assumes the role of Fed Chair.
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