The stock market, which has been strong thanks to the good news about coronavirus vaccines, jumped to a record high today on news that President-Elect Joe Biden is planning to nominate Janet Yellen to head the Treasury Department. She will be the first woman to lead the department, and is considered an especially strong pick, particularly at this moment. Yellen is a labor economist and monetary policy expert who cares deeply about issues of inequality, and is respected by members of both parties. She served as the Chair of the Federal Reserve from 2014 to 2018, and headed the White House Council of Economic Advisers under President Bill Clinton.
Yellen’s strong piloting of the Federal Reserve won her support on Wall Street, while she is also popular with labor interests: many analysts credit her with the strong labor market of the Obama years that continued until the pandemic. Former Goldman Sachs executive Gary Cohn, who advised Trump on economic policy, tweeted that Yellen “is an excellent choice…. [S]he will be the steady hand we need to promote an economy that works for everyone, especially during these difficult times.” Senator Elizabeth Warren (D-MA), known as a progressive, tweeted that the choice of Yellen is “outstanding…. She is smart, tough, and principled…. [S]he has stood up to Wall Street banks….”
Yellen’s expected nomination is yet another Biden pick that emphasizes stability and a return to a government to which Americans had become accustomed before Trump’s election. The Biden-Vice President-Elect Kamala Harris administration appears ready to use the government to help ordinary Americans.
That return to our traditional position appears popular among financial markets as well as with ordinary voters. The Dow Jones industrial average jumped with the Yellen news, but it had topped 30,000 earlier, shortly after Pennsylvania certified its votes for Biden.