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Economics

Yellen May Boost Treasury-Fed Cooperation, With Eye on GOP

  • Mnuchin pulled Treasury funding from several Fed facilities
  • Yellen seen avoiding early moves likely to anger Republicans
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Fed, Yellen Need to Undo Mnuchin's 'Nasty, Mean' Actions: Alan Blinder
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As Treasury secretary, Janet Yellen is almost certain to pursue tighter coordination with the U.S. Federal Reserve next year -- repairing recent frictions -- though observers say she will be careful to avoid any specific move that could trigger a wave of Republican protests.

President-elect Joe Biden’s pick for Treasury was at the Fed for the better part of two decades, and saw first-hand how vital the cooperation of the two agencies is to ensuring the flow of credit amid stressed economic times.