Positive preliminary PMI data released on Monday by Markit, along with news that President-elect Biden would likely nominate Janet Yellen as the next Treasury Secretary helped buoy the broader markets. In a time of deep partisanship, that's a very tough role.
Yellen is married to Nobel Economics Prize-winner George Akerlof. She doesn't have an easy job ahead of her.
She is close to the progressive economic elite, and has gone beyond Biden by calling for a carbon tax to fight climate change.
As chair of the central bank from 2014 to 2018, she was seen as a "dove" more inclined to keep rates low to support employment. Following the announcement Monday afternoon, Gary Cohn, President Donald Trump's first National Economic Council director, tweeted his support of Yellen, calling her "an excellent choice" and saying, "I have no doubt she will be the steady hand we need to promote an economy that works for everyone, especially during these hard times".
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People are seen at a crowded market amid the spread of the coronavirus disease (COVID-19), in Ahmedabad, India, November 20, 2020. One group of the volunteers was given two treatments of the vaccine, called ChAdOx1.
Yellen knows current Fed Chair Jerome Powell, who served as her lieutenant when she ran the central bank and whose term ends in 2022.
Yellen is seen as a consensus candidate, who is viewed as palatable within the progressive wing of the Democratic Party and is not expected to face strong opposition from Republicans in a Senate confirmation process. A Yale Ph.D graduate, she has a history of economic policymaking that stretches back decades, including a stint as president of the San Francisco Fed from 2004 to 2010, chair of the Council of Economic Advisers under Bill Clinton from 1997 to 1999, and a Fed governorship from 1994 to 1997.
Early in Trump's term, she didn't hesitate to warn of the risks tax cuts like the one he was proposing would have on the budget deficit. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.