Rosengren Says Yellen as Fed Leader Would Be Clear Communicator

Janet Yellen will be an effective communicator if she becomes chairman of the Federal Reserve, according to Boston Fed President Eric Rosengren.

Yellen “would be very good at speaking precisely, very clearly, and very calmly,” Rosengren said in an interview aired today on Bloomberg Television’s “In the Loop with Betty Liu.” The interview was taped on Oct. 11.

Yellen, who is President Barack Obama’s nominee to succeed Ben S. Bernanke, has led a subcommittee of the Federal Open Market Committee focused on improving the central bank’s communication strategies. The effort is designed to increase openness on Fed policy, reduce market volatility and assure consumers and investors that the Fed will continue to provide support to the economy so long as unemployment remains high.

“If you read her speeches, she is very precise in her language, she has really thought it through,” Rosengren said.

The shutdown of the government, now stretching into a third week, has impaired the Fed’s ability to assess the pace of economic improvement and decide whether to reduce its $85 billion in monthly asset purchases, Rosengren said.

The shutdown has closed the Department of Labor and Department of Commerce which produce reports on unemployment, inflation and economic growth.

“Ideally we’d have really good data that would be available at the time we’re making the decision,” Rosengren said. “It looks more than likely we are not going to have good data.”

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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