Janet Yellen
First female Fed Chair and Treasury Secretary, focused on full employment and stable prices.
Who was Janet Yellen?
Janet Yellen is an American economist who served as the 15th Chair of the Federal Reserve from 2014 to 2018 and became the 79th United States Secretary of the Treasury in 2021. She is known for her work on labor markets and her commitment to using monetary policy to achieve full employment.
“The economy is not a machine, it's a collection of people. And so, everything we do is aimed at improving outcomes for Americans.”
— Janet Yellen, PBS NewsHour, 2021
Janet Yellen, born in 1946, established a distinguished career as an academic and public servant, ultimately holding two of the most powerful economic positions in the United States. She earned her Ph.D. in economics from Yale University in 1971 and later taught at Harvard University and the London School of Economics. Her academic work frequently focused on labor markets and macroeconomic theory, providing a robust theoretical grounding for her policy decisions.
Her public service began with an appointment to the Federal Reserve Board of Governors in 1994, followed by a stint as Chair of the Council of Economic Advisers from 1997 to 1999 under President Bill Clinton. She then served as President and CEO of the Federal Reserve Bank of San Francisco from 2004 to 2010, where she gained significant experience in regional economic conditions. In 2010, she was appointed Vice Chair of the Federal Reserve Board, playing a crucial role in post-2008 financial crisis recovery efforts.
In 2014, Yellen became the first woman to chair the Federal Reserve, a position she held until 2018. During her tenure, the Federal Open Market Committee (FOMC) initiated the first interest rate hike since 2006, carefully managing the withdrawal of quantitative easing measures. She prioritized maximum employment and price stability, consistently seeking to keep inflation near the Fed's 2% target while fostering job growth, with unemployment falling from 6.7% in January 2014 to 4.1% by January 2018.
Appointed Secretary of the Treasury in 2021, Yellen became the first woman to hold that office. In this role, she has overseen the implementation of substantial fiscal recovery programs, including the $1.9 trillion American Rescue Plan. She has also been a leading voice in international efforts to establish a global minimum corporate tax rate of at least 15%, aiming to reduce corporate tax avoidance and increase government revenues worldwide.
Key Contributions
- Served as the first female Chair of the Federal Reserve (2014-2018), overseeing the end of quantitative easing and initiating a series of interest rate hikes.
- Became the first female U.S. Secretary of the Treasury (2021-present), managing significant fiscal stimulus packages.
- Presided over a period where U.S. unemployment decreased from 6.7% to 4.1% during her Fed Chairmanship.
- Advocated for a global minimum corporate tax, with over 130 countries agreeing to a 15% rate by 2021.
Economic Context
Over Janet Yellen's influential career spanning 1960 to 2024, the American economy underwent profound expansion, with GDP per capita surging from under $3,000 to over $84,500. Despite this remarkable ascent in output, the period also saw a dramatic shift in the nation's external accounts, turning a $3.95 billion trade surplus in 1970 into a nearly $910 billion deficit by 2024.
Legacy
Janet Yellen's career fundamentally shaped U.S. monetary and fiscal policy, notably as the first woman to lead both the Federal Reserve and the Treasury Department. Her focus on full employment and stable prices has set a precedent for responsive economic governance.