The Herald Bulletin

Afternoon Update

Nation & World

February 3, 2014

Yellen sworn in as Fed chair, succeeding Bernanke

Janet Yellen officially took over the leadership of the Federal Reserve on Monday — and along with it a delicate task: Unwinding the Fed's extraordinary economic stimulus without spooking investors or slowing a still-subpar economy.

Yellen, the first woman to lead the Fed in its 100 years, was sworn in during a brief ceremony in the central bank's board room. She succeeded Ben Bernanke, who stepped down last week after eight momentous years.

Bernanke is joining the Brookings Institution, a Washington think tank, where he will be a distinguished fellow in residence, Brookings announced Monday.

The economy Yellen inherits is far stronger than the one Bernanke faced in the fall of 2008, when the worst financial crisis since the 1930s erupted. Bernanke spent the rest of his tenure launching and managing an array of programs that are widely credited with helping restore lending and strengthen the financial system and economy after the Great Recession.

Yellen, 67, who served as vice chair under Bernanke, is taking over just as the Fed has begun its first modest moves to scale back its enormous support for the economy. At a meeting last week, the last under Bernanke's leadership, the Fed approved a second $10 billion reduction in its monthly bond purchases to $65 billion.

The first cut was announced at the Fed's December meeting, when it said it would trim its purchases from $85 billion a month, the level for more than a year. The Fed's bond buying has been intended to keep long-term interest rates near record lows to stimulate the economy.

But as the economy has improved, Fed officials have decided it could withstand less help. The Fed is expected to keep reducing its bond purchases this year and end them altogether in December.

If the Fed moves too quickly to withdraw its stimulus, it could spook financial markets and send rates higher. Conversely, paring its bond buying too slowly could risk creating bubbles — that might burst — in real estate, stocks or other assets.

Text Only
Nation & World
  • news_fergusonprotests.jpg Streets of Ferguson stay calm after violent nights

    Ferguson's streets were peaceful for a third night as tensions between police and protesters continued to subside after nights of violence and unrest erupted when a white police officer fatally shot an unarmed black 18-year-old.

    August 23, 2014 1 Photo

  • news_icelandvolcano.jpg Subglacial volcanic eruption begins in Iceland

    Iceland raised its aviation alert to red Saturday as a subglacial eruption began at the restless Bardarbunga volcano, which has been rattled by thousands of earthquakes in the past week, the country's Meteorological Office said.

    August 23, 2014 1 Photo

  • news_obamavacation.jpg Obama taking less vacation, but too much for some

    President Barack Obama has spent less time away from the White House than his predecessors. But his two-week break on the resort island of Martha’s Vineyard and hours on the golf course have his detractors teeing up as they highlight the slew of foreign policy crises currently facing the United States.

    August 23, 2014 1 Photo

  • news_holtzclaw.jpg Policeman accused of serial sex assault on patrol

    An Oklahoma City police officer arrested on charges of serial sexual assault preyed on women in the rundown neighborhoods he was assigned to patrol — picking some up off the street, pulling others over at traffic stops and in one case taking a woman to a nearby school, according to an affidavit released Friday.

    August 22, 2014 1 Photo

  • news_ferguson.jpg New fear: What happens in Ferguson if no charges?

    Conditions calmed this week in Ferguson after nights of sometimes violent unrest stemming from the fatal shooting of a black 18-year-old by a white police officer. But a delicate and crucial question lingers: What happens if the grand jury now considering the case doesn’t return a charge against the officer?

    August 22, 2014 1 Photo

  • Oklahoma police chief resigns over racial slur repost to Facebook

    A repost on his personal Facebook page of a racially-charged comment by the original poster of a comedy video has forced the police chief of an Oklahoma city to resign his office.

    August 21, 2014

  • US existing home sales rise for 4th straight month

     Sales of existing U.S. homes rose for the fourth straight month in July to their highest level in nearly a year, the latest sign that the housing recovery is picking up after stumbling at the start of the year.

    August 21, 2014

  • Aid group: US doctor who had Ebola has recovered

    At least one of the two American aid workers who were infected with the deadly Ebola virus in Africa has recovered and was to be discharged Thursday from an Atlanta hospital, a spokeswoman for the aid group he was working for said.

    August 21, 2014

  • Holder bringing personal perspective to Ferguson

     Eric Holder talks about the nation's civil rights struggles in a way no previous U.S. attorney general could — by telling his own family story.

    August 20, 2014

  • Senate control could rest with well-funded women

    Control of the Senate could lie in the fortunes of female candidates and the deep-pocketed donors, like former New York Mayor Michael Bloomberg, who are sending piles of cash their way.

    August 20, 2014

More Resources from The Herald Bulletin
AP Video
Furry Roommates: Dorms Allowing Cats and Dogs Chase Rice Defends Bro-Country 'Jersey Shore Massacre' Pokes Fun at MTV Series Raw: Wash. Mudslides Close Roads, Trap Motorists DC's Godfather of Go-Go Honored Ukraine Calls Russian Convoy a 'direct Invasion' Girl Meets Her 'one in the World' Match Coal Gas Boom in China Holds Climate Risks Japan Landslide Rescuers Struggle in Heavy Rain Raw: Severe Floods, Fire Wrecks Indiana Homes Endangered Red Wolves Face Uncertain Future Raw: Russian Aid Convoy Arrives in Ukraine Okla. Policeman Accused of Sex Assaults on Duty Dominican Republic Bans Miley Cyrus Concert Raw: Israeli Air Strike in Gaza Raw: Bodies of MH17 Victims Arrive in Malaysia Attorney: Utah Eatery Had Other Chemical Burn
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium