WASHINGTON – A conservative group has launched a campaign to stop Janet Yellen from becoming the next head of the Federal Reserve, arguing her confirmation would lead to an expansion of easy-money policies and that such a move would cause prices to soar.
American Principles in Action, a Washington, D.C., advocacy group, has created a website called NoOnYellen.com and said it planned to spend $25,000 placing a two-minute video on financial websites urging opposition to Yellen, President Barack Obama’s nominee to replace Fed Chairman Ben S. Bernanke.
“Janet Yellen is an enormously well-credentialed economist who also happens to be an inflationist who should not be allowed to run the Federal Reserve,” the group’s chairman, Sean Fieler, president of Equinox Partners, a New York hedge fund, says in the video.
The video features two other Yellen critics, James Grant, founder of Grant’s Interest Rate Observer, and Daniel Oliver, director of the Committee for Monetary Research and Education.
Grant says in the video that Yellen is “energetic, dynamic, gets things done,” but “would do enormous damage” as Fed chair.
Yellen, the Fed’s vice chair, is a Democrat and viewed as a “dove” on inflation – willing to tolerate somewhat higher prices to address unemployment. Many conservatives are “hawks” on inflation, arguing keeping prices low should be the Fed’s chief concern.
The Fed has a dual mandate to maintain price stability and maximize employment. Liberals have strongly supported Yellen’s nomination because of her focus on reducing the nation’s high unemployment rate.
Although Yellen likely will face opposition from some Republicans in the Senate, she is expected to be confirmed as the next Fed chair. She would be the first woman to hold the position in the central bank’s 100-year history.