Biden to nominate ex-Federal Reserve chair Janet Yellen to Treasury: source

[WASHINGTON] President-elect Joe Biden will nominate former Federal Reserve chair Janet Yellen to head the US Treasury, a financial source with knowledge of the decision said Monday - a choice that, if confirmed, would make her the first woman in the job.

The 74-year-old would be tasked with steering the world's largest economy as it struggles with mass layoffs and a sharp growth slowdown caused by the Covid-19 pandemic.

The nomination - which the source said was supported by left-wing members of Mr Biden's Democratic Party - would require Senate confirmation.

"Yellen will be the next treasury secretary" and she could be formally announced as early as Tuesday, the source told AFP, confirming news first reported by The Wall Street Journal.

Ms Yellen broke barriers when former president Barack Obama nominated her to serve as Fed chair in 2014, a position President Donald Trump ousted her from four years later.

At the Fed, Ms Yellen was seen as a "dove" inclined towards low interest rates to support employment.

She would succeed Steven Mnuchin, and likely be faced with breaking a months-long deadlock in Congress over passing a new stimulus spending bill for the US economy - assuming lawmakers don't act before Mr Biden's inauguration in January.

Mr Biden, who served as vice-president under Mr Obama and defeated Mr Trump in elections held earlier this month, has been moving quickly to fill key slots in his incoming cabinet.

Earlier on Monday, he announced a slew of appointments to key national security roles including former Obama official Antony Blinken as secretary of state.

There was little obvious impact on Wall Street stocks from the announcement. The Dow closed up 1.1 per cent.

AFP