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 The Senate Banking Committee approved her nomination on a 14-8 vote.
Sen. Joe Manchin, D-V.Wa., was the only Democrat to oppose Yellen's
nomination. Republican Sens. Bob Corker of Tennessee, Tom Coburn of
Oklahoma and Mark Kirk of Illinois supported her.
Yellen's path to confirmation also became easier on Thursday when
the full Senate voted to change its rules for approving all
presidential nominees other than Supreme Court selections. Now a
simple majority will be required, instead of 60 votes.
Republicans could still try to delay the final vote to focus
attention on other issues. For example, Sen. Lindsey Graham has
threatened to hold up nominations for government positions until
survivors of last year's deadly attack on the diplomatic post in
Libya appear before Congress.
But Democrats control 55 votes in the chamber, so such tactics could
easily be overcome.
Yellen was nominated by President Barack Obama in October to succeed
Ben Bernanke, whose second four-year term as chairman will end Jan.
31.
She would be the first woman to lead the Fed and the first Democrat
to do so since Paul Volcker stepped down in 1987. She made clear at
the committee's hearing last week that she's prepared to support the
Fed's extraordinary efforts to bolster the economy until there are
clear signs of a sustained rebound and further improvement in the
job market.
As a result, the Fed's low-rate policies are expected to continue
under her leadership. Yellen has been a close Bernanke ally, first
as president of the San Francisco regional Fed bank, and then since
2010 as vice chair of the Fed's board in Washington.
Yellen and Bernanke are both considered "doves" — Fed officials who
stress the need to fight unemployment during periods of economic
weakness. By contrast, "hawks" tend to worry more about inflation
that could arise from the Fed's policymaking.
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In the view of Fed watchers, Yellen's testimony last week solidified
her dovish reputation. She maintained that the Fed's bond buying
program has successfully supported the economy by keeping long-term
borrowing rates. And she minimized concerns that critics have raised
about the bond purchases.
The Fed is adding to its investment portfolio with $85 billion a
month in bond purchases. Its holdings are nearing $4 trillion, more
than four times their level before the financial crisis struck in
the fall of 2008.
Republican critics say they fear that by flooding the financial
system with money, the Fed has inflated stock and real estate prices
and could create asset bubbles that could pop with dangerous
consequences for the economy.
Some say they also worry that the Fed's eventual unwinding of its
investment holdings will unsettle financial markets, sending stock
prices falling and interest rates rising and threatening the
economic recovery.
Sen. Mike Crapo, R-Idaho, said before Thursday's vote that he would
oppose her because of his disapproval of the Fed's easy money
policies.
[Associated
Press; MARTIN CRUTSINGER, AP Economics Writer]
Copyright 2013 The Associated
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