U.S. Federal Reserve takes a dovish turn, Sarah House speaks to ET Now

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US Fed Reserve: Holds rates, pledges 'patient' stance on future moves. Removes reference to further gradual rate increases.

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    U.S. Federal Reserve takes a dovish turn, Sarah House speaks to ET Now

    US Fed Reserve: Holds rates, pledges 'patient' stance on future moves. Removes reference to further gradual rate increases

    News video | 1632 views

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    President Barack Obama will announce Wednesday afternoon that Janet Yellen is his choice to head the Federal Reserve, a White House official confirmed to TIME.

    Yellen, currently the vice chairwoman at the Fed, has been seen as Obama’s top choice since soon after former economic adviser Larry Summers withdrew his name from consideration for the role. She is considered a strong supporter of current chair Ben Bernanke’s stimulus policies, which have coincided with a soaring stock market, and is largely expected to extend them.

    Obama will announce his decision to nominate Yellen at the White House at 3 p.m. Wednesday, joined by Yellen and Bernanke, according to the White House offical. Yellen’s nomination must still be confirmed by the Senate.

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  • Watch RBI Turns Dovish With 25 Basis Point Rate Cut Video
    RBI Turns Dovish With 25 Basis Point Rate Cut

    The Reserve Bank of India (RBI) on Tuesday cut its benchmark interest rate by 25 basis points, citing a decline in inflation in the economy. All six members of the monetary policy committee voted in favour of the rate cut, the RBI said.

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  • Watch Barack Obama to pick Janet Yellen as leader of Federal Reserve: Officials Video
    Barack Obama to pick Janet Yellen as leader of Federal Reserve: Officials

    President Barack Obama will nominate Janet L. Yellen as chairwoman of the Federal Reserve on Wednesday, White House officials said Tuesday night, ending an unusually prolonged and public search to fill one of the most important economic policy-making jobs in the world.

    Yellen, 67, has been the Fed's vice chairwoman since 2010, when Obama nominated her to the post and she was easily confirmed on a voice vote by the Senate. She would be the first woman to run the central bank.

    She is also expected to win bipartisan support for her new role in the Democratic-controlled Senate, said Sen. Charles E. Schumer of New York. But some Republicans could throw up hurdles. Sen. Bob Corker of Tennessee voted against her appointment as vice chairman because of what he called 'her dovish views on monetary policy,' and he was already expressing reservations on Tuesday night about her nomination for the top job.

    'We will closely examine her record since that time,' said Corker, who sits on the Banking Committee, which must clear her nomination before it moves to the full Senate. 'But I am not aware of anything that demonstrates her views have changed.'

    Yellen's nomination was widely expected, but she was not thought to be Obama's first choice for the job. For months, the speculation was that the president would nominate Lawrence H. Summers, a former adviser of Obama's. But Summers d

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    Federal Reserve News: Who Is Janet Yellen?

    The vice chairman of the Federal Reserve, a leading candidate to replace Ben Bernanke as head of the agency, is favored by Democrats and economists alike.

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  • Watch Janet Yellen to become new head of the Federal Reserve Video
    Janet Yellen to become new head of the Federal Reserve

    President Obama will announce that Janet Yellen is to take over at the top of the US central bank, the Federal Reserve. Yellen will start a four-year term in January and becomes the first woman to run the organisation. Markets in the US continue to suffer as worries mount over the looming deadline to raise the debt ceiling. In company news, we have a report on the giant of the telecom equipment sector, Huawei. Staying in China, Yum Brands reports a 68% drop in quarterly profits. In Europe, steelmaker Arcelor Mittal says it plans to invest €92 million at a site in Dunkirk and tension is increasing for the struggling Italian airline Alitalia. Here in France, French company bosses have called on President Hollande to ease the current tax regime.

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