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Yellen’s nomination signals continuity

Janet Yellen, if confirmed by the Senate, would become the first woman to head the Federal Reserve.
Janet Yellen, if confirmed by the Senate, would become the first woman to head the Federal Reserve.Charles Dharapak/Associated Press

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President Obama’s nomination of Janet Yellen signals a continuation of the Federal Reserve’s policies, economists said, including its historic efforts to keep interest rates low as a way to boost the economy.

Yellen, vice chairwoman of the Federal Reserve since 2010, is a key architect of the extraordinary steps taken by the Fed to spur the economy during a lackluster recovery marked by persistently high national unemployment. Among those efforts was a Fed decision to announce that it would hold its benchmark short-term interest rates near zero until unemployment fell to 6.5 percent and purchase $85 billion a month in Treasury and mortgage-backed securities to drive long-term rates down as a way to spur real estate, autos, and other interest-sensitive industries.

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