Walking out with a PhD in Economics in 1971, she would’ve been really proud of her smart self.
The same year, she got to be assistant professor at Harvard. Think of that genius and ambitious girl – who would’ve looked up, closed her eyes, and dreamt of a day when she’d make real difference on economies and will be recognized and revered by the citizens of her country.
Oh well, she’s become the number one hate-figure and parody-subject.
Not only ignorant twitteratis, but also economists and politicians hate her. Economists hate her, because that’s how they get on TV. TV commentators hate her because she takes away their prime time. And the general public hates her because their 401(k)’s are falling, and they think she’s the big short.
They make fun of her odd grey hair, her clothing style, and even her chin-fat. Please, give the woman a break.
I’d suggest looking at her resume before pointing to her looks. She was the one who spoke against Greenspan in 1990s. She was the one who sounded an alarm about the 2008 financial crisis much in advance. She was the one who had double the experience than both her predecessors, when she took over as the first woman chair of Fed. Even today, she’s undoubtedly one of the smartest minds we have to do the job – which isn’t an easy job by the way. In fact, it’s one of the most difficult jobs on Earth. Let’s see why –
First, Fed chair isn’t Fed. Fed chair is the public face of the Fed (FOMC as well). FOMC (Federal Open Market Committee) who decides monetary policy comprises of Governors and representatives from presidents of 12 reserve banks. You think she has her team? No. Governors are appointed by the U.S. President and they don’t need to listen to her, and banks elect their own presidents. A mix of both get onto FOMC.
So how many members are elected by her? Zero. She’s the one who convenes everything and presents the decision to the world outside (where we live in). Sure, she has an opinion and say in matters, but why don’t you ever blame the 12 other guys who voted for whatever she’s declaring? No, you’ll just pick the lady.
She has to head eight FOMC meetings, be open to questions, explain policy in as much detail as possible, take ownership of it, and testify twice a year before the congress. Most people in Congress, media, and fund houses have an agenda, and they want her to say exactly what they want. For example, some in congress are still questioning why rates are still near 0 after 7 years of recovery. Clearly they don’t follow the economy closely. Ask all the hedge funds who are vilifying her on the 0.25% hike and they’ll tell you that Yellen is rather the cause of impending recession.
Caught in between extreme expectations, challenging and fast-changing world, and media-bashing; she continues to speak. Imagine the pressure of facing impromptu questions to which you don’t know the answers. You can’t predict the future. You don’t have the crystal ball. But still you have to give answers, while making sure you’re not saying any single word that is ‘extreme’. Because that surely will be the headline tomorrow, and Dow might drop a thousand points in a flash. Yes, every word could be worth a thousand points. In such madness, I appreciate how she stays calm. She’s an epitome of diplomacy. She’s the best one you have.
Have you ever seen her smile? I have, but not very often. Let her take a deep breath, and you take one too. She took over a difficult world with free money and 7.3% unemployment. She’s got it under 5% while ending QE and not going the NIRP way. She’s come a long way. You might not fully agree with her policies – hence, you are free to doubt her. Just don’t yell?
- - - - -
If you liked/disliked the blog, and would like to be the first to be notified of any further writing of mine, do subscribe by clicking on the button below. No ads. No spamming. That's not what I do. Just a little guy with big heart and thoughtful mind, trying to speak my heart out. Goodluck! :)