Yellen to defend Fed's bond-buying program at US Senate
A report by Reuters said US Federal Reserve Chairman nominee Janet Yellen would be defending her employer's decision about its asset-buying program when she would be facing US Senators next week in a hearing. The meeting would be held on November 14 starting at 10AM.
The US Senate Banking committee would be meeting with Yellen regarding her nomination as the next chief of the Federal Reserve. Yellen got her nomination from none other than President Barack Obama. Should Yellen get her appointment, she would be replacing outgoing Fed Chairman Ben Bernanke. Bernanke would be stepping down in January as he ends his term. Yellen is vice chair of the Federal Reserve.
Reuters deduced that Yellen would be receiving backlash from Republican senators regarding the Fed's decision to retain its USD85 billion monthly bond purchases. The political party was not open to the US' measures to aid its struggling economy. Republicans, said Reuters, argued that the Fed's actions carried risks to ignit inflation and financial instability.
Louisiana Republican David Vitter told Reuters last week, "I'm concerned about what seems to be a continuing (of) free money policy forever. I think we're building up inflationary pressure in the future. A lot of conservatives, including me, have concerns about that."
Vitter, who is part of the banking panel, voted against Yellen for the Fed chair position in 2010.
On the other hand, Vitter expressed confidence that Yellen would only require enough support to get her elected as the new Fed chair.
12 of the 22 seats in the Senate banking panel belong to the Democrats, who were open for Yellen to head the Fed. Reuters pointed out that Democrats control the current Congressional chamber at 55-45, such that Yellen would only require a few votes from Republicans to get cleared from procedural barriers prior to reaching the Senate.
"The bar is going to be 60 votes. That is clear. And she will probably surpass that bar," Vitter said.