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Economics

Is Yellen a Hawk in Dove's Feathers?

People who expect Yellen to lean toward easy money may be surprised by how ready she is to tighten policy when the time is right. 

If you want to know what Janet Yellen might be like as the head of the Federal Reserve, look at 1996.

Attention has focused on Yellen's tenure as the Fed's vice-chair since 2010. But she was also a Fed governor from 1994 to 1996 when the economy was healthy. If she gets the nod, she would probably stick around until 2018, when forecasters in the private sector and the Fed expect the economy to be back at full employment. So the earlier period, rather than her handling of the crisis, might tell us more about how she would steer the Fed.