Bernanke Replacement Janet Yellen to be Nominated, First Female Fed Chair

Outgoing Fed chair Ben Bernanke will be officially replaced by Ms. Janet Yellen.

From Bloomberg:

President Barack Obama will nominate Janet Yellen as chairman of the Federal Reserve, which would put the world’s most powerful central bank in the hands of a key architect of its unprecedented stimulus program and the first female leader in its 100-year history.

Obama will announce the nomination at 3 p.m. today in Washington, a White House official said in an e-mailed statement. Yellen, 67, would succeed Ben S. Bernanke, whose term expires on Jan. 31.

Obama turned to Yellen, vice chairman of the Fed since 2010, after the other leading candidate, former Treasury secretary and White House economic adviser Lawrence Summers, withdrew from consideration amid mounting opposition from Democrats on the Senate Banking Committee

Here is a timeline of Ms. Yellen’s career

Here is Dr. Marc Faber’s comment on Ms. Yellen as previously posted here

She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted.And don't believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let's tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence.

Rising financial markets as of this writing appear to reflect on the cheering her nomination as she will likely reward Wall Street and governments around the world with more gifts from money printing.

Asian policymakers also warmly welcomes Ms. Yellen. The Wall Street Journal Real Times Economic Blog quotes Philippines Finance Secretary Cesar Purisima 

More importantly, Ms. Yellen’s nomination signals a commitment to stability, continuity, and a smooth transition at the Fed. Ms. Yellen was one of Chairman Bernanke’s co-pilots as they navigated the turbulence of the global financial crisis, as well as the uncertainty of its aftermath. On their watch, the United States was saved many times from economic disaster, and I am confident that her leadership will continue to ably guide the Fed,” he said.

"Saved" many times from disaster of their own creation? Yet will Ms. Yellen’s regime really be about stability and continuity or about shifting resources from mainstreet to the government and their cronies? 

Or has Dr. Bernanke been smart enough to bail out of the FED while setting up Ms. Yellen for a trap? 

The chart from Austrian economist Bob Murphy shows of the baptism of fire (S&P crash) for the newly appointed Alan Greenspan and Ben Bernanke. 

Will Ms. Yellen suffer the same fate too?