US Treasury Secretary Yellen Faces Short Tenure Speculation... Denies Plans to Leave Amid Replacement Rumors

November Midterm Election Results Remain Uncertain

Janet Yellen, U.S. Secretary of the Treasury
Photo by Reuters Yonhap News

[Asia Economy Reporter Park Byung-hee] Although there have been rumors about the replacement of U.S. Treasury Secretary Janet Yellen following the U.S. midterm elections on November 8, it has been confirmed that she has no intention of leaving her position.

Bloomberg News reported on the 28th (local time), citing sources, that Secretary Yellen has expressed to the White House her intention to continue serving as Treasury Secretary after the midterm elections.

Earlier, the U.S. internet media Axios reported, citing sources, that the White House is quietly preparing for Secretary Yellen’s departure after the midterm elections. Possible successors mentioned include Commerce Secretary Gina Raimondo and Federal Reserve (Fed) Vice Chair Lael Brainard.

However, Secretary Yellen is known to be committed to tasks such as implementing the Russian oil price cap and modernizing the Internal Revenue Service (IRS), and intends to continue fulfilling her duties as Treasury Secretary. Treasury Department spokesperson Michael Gwin stated bluntly, "Secretary Yellen has no plans to leave." A spokesperson for Secretary Raimondo, who is mentioned as a potential successor, said, "Secretary Raimondo is happy with her work at the Commerce Department and is busy implementing semiconductor and broadband legislation."

Bloomberg noted that the replacement discussions are in the early stages and it is unclear whether U.S. President Joe Biden desires a change.

There is also analysis that the midterm election results could be a variable. Although the Secretary is nominated by the President, Senate confirmation is required. If the Democratic Party loses the Senate midterm elections, President Biden would have to consider the Republican Party’s stance, which could increase the likelihood of Secretary Yellen continuing in office.

Bloomberg reported that while Secretary Yellen is highly respected among economists and international policymakers, there have been clashes with White House officials. The most notable clash was in June when Secretary Yellen admitted that her inflation forecast was mistaken. At that time, she acknowledged that her judgment that high inflation would not last long was wrong, which reportedly displeased White House aides for two days.

In recent discussions about student loan forgiveness announced by President Biden, aides are said to have deliberately excluded Secretary Yellen, judging that her concerns about inflation could become an obstacle to the loan forgiveness discussions.

Secretary Yellen took office on January 26 last year. If replaced after the midterm elections, she would become the first Treasury Secretary in 20 years since Paul O’Neill, who served from January 2001 to December 2002, to serve less than two years. Including Steven Mnuchin, the three Treasury Secretaries preceding Yellen each served four years.

Previously, Yellen also served only four years as Chair of the Federal Reserve, making her tenure short-lived. She was recorded as the first Fed Chair in 40 years to fail to secure a second term since William Miller, who served from 1978 to 1979.

This content was produced with the assistance of AI translation services.