Receiving Wide Coverage ...
Yellen Picked as Next Fed Leader: President Obama will formally nominate Janet Yellen today to be the chairwoman of the Federal Reserve, the White House announced Tuesday. Yellen, current vice-chair of the Fed, was one of the front runners to replace Ben Bernanke, the current chairman, who is set to step down in January. She became the top candidate after Lawrence Summers withdrew his name from consideration last month. Although Yellen's nomination is expected to garner bipartisan support, she could encounter pushback from some powerful Republicans. Senator Bob Corker, R-Tenn., a senior member of the Senate banking committee, said in widely published statement that he voted against Yellen's 2010 vice-chairman nomination because of her "dovish views on monetary policy," he added,
"We will closely examine her record since that time, but I am not aware of anything that demonstrates her views have changed." Several Democratic senators, however, called her an excellent choice. American Banker laid out the challenges Yellen would face if she was nominated last month.
The Wall Street Journal notes Yellen's nomination could also be delayed by the government shutdown, because the personnel who would arrange the paperwork have been furloughed. If confirmed, Yellen would be the first woman to hold the top position at the central bank and the New York Times' Economix blog has a post about the dearth of women at central banks worldwide. The Wall Street Journal and the New York Times both posted timelines of Yellen's life and career and the Journal also has a nifty list of five things you need to know about the nominee.
Markets React Positively to Yellen Announcement: Although world markets are still feeling the negative effects of the government shutdown and looming debt ceiling fight, Yellen's nomination lifted Asian markets and the Financial Times reports that index futures suggest the S&P 500 will gain five points on Wednesday. Yellen, an architect of the Fed's current monetary policy is expected to maintain the Fed's current approach to stimulating the economy and if there is one thing that markets like, it is stability.
Don't Expect a Trillion-Dollar Coin: President Obama said on Tuesday that his team is looking at various ways to meet the government's financial obligations should Congress fail to raise the debt ceiling, but warned "there is no magic wand that allows us to wish away the chaos." Observers have said that the administration could maneuver around gridlock in Congress with things like minting a $1 trillion coin or invoking the 14th Amendment, which has a section that says validity of public debt "shall not be questioned." The Wall Street Journal has a good explainer on why investors shouldn't count on the amendment.
Wall Street Journal
JPMorgan Chase is looking to cut its lending to high-risk borrowers, like pawn shops, payday lenders, check cashers and some car dealerships, the paper reports citing people close to the situation. The move could wash away hundreds of millions of dollars from the company's annual revenue, but is part of the company's push to deal with heightened regulatory oversight.
An article states that investment banks are looking at ways to approach the research they publish so they can be more like Amazon, the online retailer known for making suggestions on other products customers may want, based on purchases. Stockbrokers and banks are investing in technology that would analyze how clients use their reports in order to sell them additional products.