U.S. Sen. Bob Corker likely to oppose Janet Yellen as Fed chairman

U.S. Sen. Bob Corker likely to oppose Janet Yellen as Fed chairman

October 10th, 2013 by Dave Flessner in Business Around the Region

U.S. Sen. Bob Corker, R-Tenn.

Photo by Associated Press/Times Free Press.

Janet Yellen

Photo by Associated Press/Times Free Press.

U.S. Sen. Bob Corker, R-Tenn., said Wednesday he is likely to oppose the nomination of Federal Reserve Vice Chairwoman Janet Yellen to become Fed chairman.

But the Chattanooga Republican still expects she likely will be confirmed by the Democrat-controlled U.S. Senate as the first woman to lead the U.S. central bank.

Corker, a member of the Senate Banking Committee who opposed Yellen's nomination to the Federal Reserve Bank in 2010, has criticized Yellen for being too dovish in supporting easy monetary policies at the Fed.

Corker wants the Fed to end its $85 billion-a-month bond buying program, which he worries is pumping too much money into the economy and risking a resurgence of inflation or an economic bubble.

"I am more of an "eat your vegetables" kind of guy," Corker said during an interview on CNBC's Squawk Box. "I'm not a chocolate pie kind of guy and that's where we've been with the Fed for a long, long time."

Corker said it's still too early to judge the Fed's success with its interest rate reductions and quantitative easing during and after the recent recession.

Supporters suggest the Fed's stimulative policy helped avoid an even bigger downturn and fears of inflation have yet to materialize with the consumer price index rising less than 2 percent in the past year.

"The trade is halfway on and it's hard to say what the effects will be in the long run," Corker said.

"It's kind of like halftime in the national championship and we're handing off to a new player. The challenge is moving away from this [third phase of quantitative easing and bond buying by the Fed]."

Corker said Yellen's confirmation hearings this fall in the Senate "will probably be the most enlightening hearing in modern history" as Senators probe the nominee for her views on ending the Fed's bond buying program and ways the Fed will phase out its unprecedented stimulative monetary approach as the economy improves.

"She wasn't someone I could support in 2010 and I doubt that is going to change, but the president looks like he has consolidated his base and I don't know how tough her nomination will actually be," Corker said.

"I want to make sure that she doesn't see herself as an enabler of bad policy from the Congress itself," he said.