President Donald Trump has reportedly begun the process of deciding who will lead the US Federal Reserve after Janet Yellen's term ends early next year.
If he wants the best outcome for US economy, he can't do better than Janet Yellen.
Let's consider Yellen's track record. She has been chair of the Board of Governors and the policy-making Federal Open Market Committee since February 2014, which means she leads the central bank's efforts to promote maximum employment and price stability.
During this period, net job creation of more than 200,000 jobs a month has brought the unemployment rate down from 6.6 per cent to 4.3 per cent, more than a percentage point lower than what the Fed saw as the sustainable long-run rate in March 2014. Meanwhile, core inflation been consistently well below the Fed's 2 per cent target: As of April, it stood at just 1.5 per cent.
In short, Yellen's policies have contributed to a surprisingly strong labor market recovery, yet also been sufficiently cautious to keep inflation below target.