The Fed is the most powerful central bank in the world, with its policy decisions reverberating in every corner of the globe. You might remember this summer that even a whisper of the word “taper” caused turmoil in emerging markets. The Fed Chairperson is arguably the most powerful policy-maker in the world, so for the sake of being prepared, here’s your cheat sheet on Janet Yellen:
1. Yellen is a dove – meaning, she cares more about unemployment rates than she does about an outbreak of inflation.
2. She spotted trouble in the housing market early, comparing housing troubles to a “600 pound gorilla in the room” at a 2007 Fed meeting.
3. She would rather rely on supervision and regulation than on raising interest rates when it comes to preventing asset bubbles from forming in a weak economy.
4. Yellen’s a Fed vet, serving as a staff economist in the 70s, was on the Board of Governors in the 90s, and was president of the Federal Reserve Bank in San Francisco. She’s currently serving on the Board of Governors and is also the Fed Vice Chairwoman, serving directly under Ben Bernanke.
5. She’s a huge advocate for Fed transparency, meaning that she’s behind the Fed letting we the people know what’s going on in terms of withdrawing monetary stimulus.