In Washington, the head of Federal Reserve was once considered to be the second most powerful person. The head can only be surpassed by the leader of the free world.
Surprisingly, 70% of people did not know about the Chairman of Federal Reserve. Most of them did not recognize her by the name Janet Yellen. There was only 1% who said the name Hillary Clinton.
The job of Federal Reserve head is one of the toughest jobs in Washington. The importance of Federal Reserve head has deteriorated with time.
Yellen took the charge of Federal Reserve head in February 2014, since that time the country has been going through a tough post-recession crisis. Since her era, there are more than 3.7 million jobs added to the Economy and unemployment continuously goes down. In April, unemployment reached nearly 7 year low of 5.4%.
Despite of all this pressure and demanding conditions, Yellen has responded very strongly. Market-watchers and members of congress demanding Yellen to raise the interest rate which is presently near zero level. She is strong with her decisions and she is capable of bearing the peer pressure that comes with the job.
Leading economists of the country are arguing to boost up the rates of interest because if the country goes through some crises, the crises can be covered by lowering the rates. If rates are already near the zero level, how can it be managed?
“We’re delaying a normalization of rates way, way beyond what is prudent,” Lawrence Lindsey, a former member of the Fed’s Board of Governors, said Tuesday at a Peterson Foundation event in Washington. “We have a monetary policy that’s now in place that was adopted for the crisis conditions of 2008 and 2009 … Maybe it made sense when you had a crisis. It does not make sense now.”
The first quarter went poor if we talk about the economy. Experts suggest that the second quarter is expected to be beneficial; it will pick up the rates.
