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WASHINGTON--Two new members have been installed on the Federal Reserve, which has enormous power over the portfolio of the United States.

Janet Yellen becomes President, ranking second Federal Reserve and Sarah Bloom Raskin is now a Governor.On Monday, both were sworn in their emploi.Ils were intercepted by President Barack Obama to fill vacancies in the seven members of the Federal Reserve Board in Washington.

Before joining the US Federal Reserve, Yellen was President of the Federal Reserve Bank of San Francisco since 2004.Raskin was Maryland, Commissioner of the financial regulation. They will help to decide how much extra help the Fed must provide to energize the economy.

Next meeting of the Federal Reserve is about 2-3 November, and many economists believe the Fed will announce at the time a program to purchase more debt publique.Ce doing, is aimed at lowering the interest rates on mortgage loans, business loans and other debts. The goal: get Americans to increase their spending, which would strengthen the economy and make them more likely to increase the hiring companies.

Yellen and Raskin additions are considered as strengthening support for the positions of principle staked by the President of the Federal Reserve, Ben Bernanke.

Bernanke reported next likely to help the economy Fed buys more debt.One of the questions that the US Federal Reserve officials are struggle with is combien.Une idea WINS favour is the Fed started with a modest amount - maybe $ 100 billion or less - then decide on a basis of meeting meeting how, if necessary, additional debt should be purchased.

Brian Sack, Executive Vice President of the Federal Reserve Bank of New York, in a speech Monday suggested that such an approach would allow the Fed to better adjust policy depending on how the economy is performing.

In the recession, reserve US Federal eventually buy a total of approximately 1.7 trillion of mortgage-backed securities and debt, as well as the obligations of the Government.The US Federal Reserve announced a huge initial commitment to purchase securities.Who came to be called the approach "shock and awe".

Even with two new members, the Council of the Federal Reserve in Washington is not full.It still has a vacant seat.

Tapping Obama Peter Diamond, an economist at the Massachusetts Institute of Technology, for this niche.However, the Senate has not approved his appointment before legislators to campaign for the elections of Congressional midterm .Que left the appointment of Diamond leaves when the Senate returns after the election of Republican novembre.Sénat have objected to what they consider as limited diamond dissecting the workings of the economy nationale.Diamant experience is an authority on social security, pensions, and taxation.

Members of the Federal Reserve Board, Yellen and Raskin are voting members of the main political group of the Fed, called the Federal Committee permanent.Le group, which meets eight times a year, makes interest rate decisions that affect the portfolio of the United States, but also big business investment decisions and petites.Décisions Federal Reserve interest rate affect the growth of the economy, inflation and employment.

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