Janet Yellen to be named Fed chair on Wednesday: White House

http://www.cnbc.com/id/101093040

Janet Yellen

After months of speculation, it's official: Janet Yellen will be the next chair of theFederal Reserve, succeeding Ben Bernanke, the White House said late Tuesday.

President Obama will make the announcement on Wednesday at 3pm ET, the White House said. Both Janet Yellen and current Fed chair Ben Bernanke are expected to attend.

Dow and S&P futures shot higher following the announcement, pointing to a higher open on Wall Street Wednesday. What are futures doing now? Click here for the latest futures action.

"Markets are giving Yellen the thumbs up, counting on quantitative easing being maintained at full pace until further notice," Sean Callow, senior currency strategist at Westpac in Sydney, told Reuters after the announcement. "It's a notable reaction given Yellen's nomination was so widely expected and that it comes at a time markets are already assuming the Federal Open Market Committee will not seriously consider a policy change at the October meeting given the fiscal standoff."

Yellen, 67, is currently the vice chairman of the Fed and has been widely reported as a front-runner to succeed Bernanke. If approved by the Senate, her appointment would crack one of the highest U.S. glass ceilings and make her the first woman to head the central bank in its 100-year history.

"She's an excellent choice and I believe she'll be confirmed by a wide margin," Sen. Chuck Schumer, D-NY, said after the announcement.

"I commend President Obama on his selection of Dr. Yellen to be the first woman to serve as Federal Reserve Chairman. She has a depth of experience that is second to none, and I have no doubt she will be an excellent Federal Reserve Chairman," Senate Banking Committee Chairman Tim Johnson, D-SD, said in a statement. "I also want to thank Chairman Bernanke for his incredible service to our country. He served as chairman during one of the most turbulent economic times in our nation's history, and I believe our financial system is stronger and more stable today in part to his efforts," Johnson said.

Yellen was appointed vice chair in Oct. 2010. She was president and CEO of the Federal Reserve Bank of San Francisco from 2004 to 2010 and also served as chair of the Council of Economic Advisors from 1997 to 1999. Prior to joining the Fed, Yellen spent much of her career as a professor at the University of California at Berkeley.