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Janet Yellen: first female Fed chair and economics trailblazer faces Trump's ax Janet Yellen: first female Fed chair and economics trailblazer faces Trump's ax
(about 3 hours later)
When Janet Yellen was sworn in as the chair of the US Federal Reserve three years ago this month, she made history. A fact that did not escape President Obama: “I should add that she’ll be the first woman to lead the Fed in its 100-year history,” said the man whose own appointment was also a historical first.When Janet Yellen was sworn in as the chair of the US Federal Reserve three years ago this month, she made history. A fact that did not escape President Obama: “I should add that she’ll be the first woman to lead the Fed in its 100-year history,” said the man whose own appointment was also a historical first.
Now she may be history. As a candidate Donald Trump said he would get rid of Yellen, he could nominate her successor by summer, rendering her a lame duck at a time when the Fed is coming under ever greater scrutiny as rates rise for the first time since the recession. Now she may be history. As a candidate Donald Trump said he would get rid of Yellen, and he could nominate her successor by summer, rendering her a lame duck at a time when the Fed is coming under ever greater scrutiny as rates rise for the first time since the recession.
On Wednesday the Fed left rates unchanged at their new historic low. But with Trump promising higher growth and the bugbear of inflation raising its head when the Fed meets again in March, odds are rates will rise again. Will Trump be happy? On Wednesday the Fed left rates unchanged. But with Trump promising higher growth and the bugbear of inflation raising its head when the Fed meets again in March, odds are rates will rise again. Will Trump be happy?
So far she has stayed above party politics and said she intends to serve her four-year term. But will her service shift the male-bent of the “dismal science”? So far she has stayed above party politics and said she intends to serve her four-year term. But will her service shift the male bent of the “dismal science”?
Even as Yellen has risen to the top of her field, the world of economics – at least in the US – has continued to struggle with diversity, with women making up less than 30% of the field.Even as Yellen has risen to the top of her field, the world of economics – at least in the US – has continued to struggle with diversity, with women making up less than 30% of the field.
In 1994, when Yellen joined the Federal Reserve’s board of governors, women represented only about one-quarter of doctoral degrees granted in economics. In 2012, two years before Yellen became the Fed chair, women earned 32% of the PhDs awarded in economics. On the undergraduate level, the ratio of men-to-women earning bachelor degrees in economics has remained stagnant at three-to-one for about 20 years.In 1994, when Yellen joined the Federal Reserve’s board of governors, women represented only about one-quarter of doctoral degrees granted in economics. In 2012, two years before Yellen became the Fed chair, women earned 32% of the PhDs awarded in economics. On the undergraduate level, the ratio of men-to-women earning bachelor degrees in economics has remained stagnant at three-to-one for about 20 years.
The number of women studying economics has remained little changed over the past couple of decades. Yellen’s treatment by senior establishment figures may show why some women may not want to pursue careers in the field. During the 2015 GOP presidential debates, Republican candidate Mike Huckabee was asked whether he would keep Yellen in place as the Fed chair if elected president. “My wife’s name is Janet. And when you say Janet yellin’, I’m very familiar with what you mean,” he joked.The number of women studying economics has remained little changed over the past couple of decades. Yellen’s treatment by senior establishment figures may show why some women may not want to pursue careers in the field. During the 2015 GOP presidential debates, Republican candidate Mike Huckabee was asked whether he would keep Yellen in place as the Fed chair if elected president. “My wife’s name is Janet. And when you say Janet yellin’, I’m very familiar with what you mean,” he joked.
Just weeks before Huckabee’s joke, Ralph Nader penned an open letter to Yellen calling on her to increase interest rates and advising her to seek advice from her husband.Just weeks before Huckabee’s joke, Ralph Nader penned an open letter to Yellen calling on her to increase interest rates and advising her to seek advice from her husband.
“Chairwoman Yellen, I think you should sit down with your Nobel prize-winning husband, economist George Akerlof, who is known to be consumer-sensitive. Together, figure out what to do for tens of millions of Americans who, with more interest income, could stimulate the economy by spending toward the necessities of life,” he wrote.“Chairwoman Yellen, I think you should sit down with your Nobel prize-winning husband, economist George Akerlof, who is known to be consumer-sensitive. Together, figure out what to do for tens of millions of Americans who, with more interest income, could stimulate the economy by spending toward the necessities of life,” he wrote.
Yellen addressed his concerns in a letter of her – at no point mentioning her husband. She was also not cowed when the following year the now-president Trump accused the Fed of creating a “false economy” and keeping the interest rates low to help Obama. Trump also said that he would replace her if elected. His remarks have had little effect on Yellen, who insists that partisan politics “plays no role” in Fed’s decisions and intends to serve out her four-year term. Yellen addressed his concerns in a letter of her own – at no point mentioning her husband. She was also not cowed when the following year the now-president Trump accused the Fed of creating a “false economy” and keeping interest rates low to help Obama. Trump also said that he would replace her if elected. His remarks have had little effect on Yellen, who insists that partisan politics “plays no role” in the Fed’s decisions and intends to serve out her four-year term.
“I guess the way I think about it is that I was confirmed by the Senate to a four-year term. The term of the Fed chair was not meant to coincide with the president ... I do intend to serve out my four-year term,” Yellen told reporters after the Fed hiked interest rates in December. “I guess the way I think about it is that I was confirmed by the Senate to a four-year term. The term of the Fed chair was not meant to coincide with the president … I do intend to serve out my four-year term,” Yellen told reporters after the Fed hiked interest rates in December.
It is too early to tell if Yellen’s appointment could lead more women to be interested in economics. But representation matters and seeing a woman appointed to one of the top economic posts in the world could inspire a new generation of female economist, said Elise Gould, senior economist at the left-leaning Economic Policy Institute.It is too early to tell if Yellen’s appointment could lead more women to be interested in economics. But representation matters and seeing a woman appointed to one of the top economic posts in the world could inspire a new generation of female economist, said Elise Gould, senior economist at the left-leaning Economic Policy Institute.
“It’s important to have a black president to see that it’s possible. It doesn’t change the world, right? Having that. Obviously, we didn’t end racism in the country. But, it matters,” she said.“It’s important to have a black president to see that it’s possible. It doesn’t change the world, right? Having that. Obviously, we didn’t end racism in the country. But, it matters,” she said.
As in other professions, Yellen’s gender has been a cause of concern for some.As in other professions, Yellen’s gender has been a cause of concern for some.
“One of the concerns was that she might be more likely to be convinced to be more hawkish, that there might be extra pressure on her. I think she has really done a great job,” said Gould, who added that she disagrees with the Fed’s decision to raise interest rates in December. “However, for a really long time she pushed that envelope and held the line when she did come under a lot of attack and pressure. I commend her for that.”“One of the concerns was that she might be more likely to be convinced to be more hawkish, that there might be extra pressure on her. I think she has really done a great job,” said Gould, who added that she disagrees with the Fed’s decision to raise interest rates in December. “However, for a really long time she pushed that envelope and held the line when she did come under a lot of attack and pressure. I commend her for that.”
Yellen’s position as the head of the US central bank might make her an ideal role model for younger women, but the impact is difficult to measure. The past three years are not enough time to see a real difference in the field, according to Karen Dynan, the US Department of the Treasury’s assistant secretary for economic policy and chief economist. “Things are going to change gradually,” she said.Yellen’s position as the head of the US central bank might make her an ideal role model for younger women, but the impact is difficult to measure. The past three years are not enough time to see a real difference in the field, according to Karen Dynan, the US Department of the Treasury’s assistant secretary for economic policy and chief economist. “Things are going to change gradually,” she said.
“I personally believe that it does make a big difference, having people like Janet Yellen in these important leadership positions in the field of economics. And I am saying that partly from personal experience,” said Dynan. “I myself was a very newly minted PhD when she first arrived at the Fed as a governor in 1994. I remember meeting her and strongly identifying with her personal style and thinking: Wow, if she can rise up to an important position like that I can, too. And of course that was when she was – relative to where she is now – at a junior senior level.” “I personally believe that it does make a big difference, having people like Janet Yellen in these important leadership positions in the field of economics. And I am saying that partly from personal experience,” said Dynan. “I myself was a very newly minted PhD when she first arrived at the Fed as a governor in 1994. I remember meeting her and strongly identifying with her personal style and thinking: wow, if she can rise up to an important position like that I can, too. And of course that was when she was – relative to where she is now – at a junior senior level.”
Dynan spent 17 years at the Fed as a senior adviser before going on to join Brookings Institution as co-director of economic studies in 2009. Four years later, she was appointed to serve in the Treasury by President Obama. Over the years, Dynan, too, has found herself on the other end of the equation – being a role model for younger female colleagues, helping them figure out their career goals and navigate their field. She meets them over coffee or after her lecturers and, surprising herself, even poses for selfies. Dynan spent 17 years at the Fed as a senior adviser before going on to join the Brookings Institution as co-director of economic studies in 2009. Four years later, she was appointed to serve in the Treasury by President Obama. Over the years, Dynan, too, has found herself on the other end of the equation – being a role model for younger female colleagues, helping them figure out their career goals and navigate their field. She meets them over coffee or after her lectures and, surprising herself, even poses for selfies.
“It’s quite striking for me, but young women have come up to me after I give a public talk and ask to take selfies with me,” she laughs. “I don’t feel like I am that kind of a celebrity, but it makes me feel good that I have provided some sort of information to them.”“It’s quite striking for me, but young women have come up to me after I give a public talk and ask to take selfies with me,” she laughs. “I don’t feel like I am that kind of a celebrity, but it makes me feel good that I have provided some sort of information to them.”
Dynan’s lectures often focus on how to use economics to influence people’s well being. Women tend to be more interested in the field if they think that they can help people, explained Dynan. Dynan’s lectures often focus on how to use economics to influence people’s wellbeing. Women tend to be more interested in the field if they think that they can help people, explained Dynan.
“People have this preconceived notion that economics is about helping rich people get richer,” she said. “I don’t see economics that way at all.”“People have this preconceived notion that economics is about helping rich people get richer,” she said. “I don’t see economics that way at all.”
Heather Sarsons, a PhD candidate in economics at Harvard University, developed an interest in economics after starting college.Heather Sarsons, a PhD candidate in economics at Harvard University, developed an interest in economics after starting college.
“I didn’t really know what economics was when I started university. I was interested in studying social issues and thought economics was more about business and banking. At some point I realized that economics is an extremely broad field and that there were a lot of people working on issues I was interested in, so I decided to major in it,” she said. “I found the use of statistics and data to understand social issues and inform policy compelling. Unfortunately, I think that misperceptions like the ones I had deter a lot of women and minorities from studying economics.”“I didn’t really know what economics was when I started university. I was interested in studying social issues and thought economics was more about business and banking. At some point I realized that economics is an extremely broad field and that there were a lot of people working on issues I was interested in, so I decided to major in it,” she said. “I found the use of statistics and data to understand social issues and inform policy compelling. Unfortunately, I think that misperceptions like the ones I had deter a lot of women and minorities from studying economics.”
Sarsons is currently using her research to help a particular demographic: women in the field of economics. One of her papers found that when female economists co-author papers with men, they are often given less credit and it could affect whether they receive tenure or not. Her paper on the research was “intentionally solo-authored”.Sarsons is currently using her research to help a particular demographic: women in the field of economics. One of her papers found that when female economists co-author papers with men, they are often given less credit and it could affect whether they receive tenure or not. Her paper on the research was “intentionally solo-authored”.
Representation is not the only factor behind the lack of women in economics, but it is an important one, according to Sarsons.Representation is not the only factor behind the lack of women in economics, but it is an important one, according to Sarsons.
“Having more women in economics signifies that women have a place and can succeed in this field, and that the field is a good environment for women to work in,” she said. As for women receiving fair credit for their work? “I hope that if women become more equally represented in economics, any innate biases that people hold will fade and problems like this will go away.”“Having more women in economics signifies that women have a place and can succeed in this field, and that the field is a good environment for women to work in,” she said. As for women receiving fair credit for their work? “I hope that if women become more equally represented in economics, any innate biases that people hold will fade and problems like this will go away.”