It is relatively moderate on many subjects, including trade. Mr. Akerlof remembered in a biographical note When he met her in 2001: “Not only did our personalities fit together perfectly, but we also always agreed on macroeconomics. Our only disagreement is that she supports free trade a little more than I do. “
Ms. Yellen was instrumental in influencing the Fed’s senior officials. John C. Williams, who worked for her in San Francisco, now runs the Federal Reserve Bank of New York. Mary C. Daly, who now heads the San Francisco Fed, cites Ms. Yellen as an important mentor.
This, combined with Ms. Yellen’s experience working with Mr. Powell, could help facilitate the kind of close relationship between the Fed and the Treasury Department, who work together on a variety of crisis response programs.
Henry M. Paulson Jr., who served as Treasury Secretary under President George W. Bush, praised the selection. He said Ms. Yellen “is going to be a tough job but she has the experience, talent, credibility and relationships with members of Congress on both sides of the aisle to make a real difference.”
While the other leading candidates for the job also had extensive financial and monetary policy experience, Ms. Yellen was seen to be well placed to receive Senate endorsement even if Republicans retain control of the chamber.
Another top candidate for the role, Lael Brainard, is the only remaining Fed Democratic Party governor on the seven-member board who currently has two vacancies. It might have been difficult to replace them at the Fed: the nominees have been difficult to confirm for the past decade, and the Senate may remain under Republican control.
While running the Fed, Ms. Yellen had at times an irritable relationship with Republican Congressmen. In one case, then-Republican Mick Mulvaney of South Carolina said Ms. Yellen exceeded her limits by speaking about inequality.