Janet Yellen, a 63-year-old UC Berkeley professor emeritus is a contender to become the Vice Chairwoman of the Fed. U. S. President Obama plans to do so, as the country is at an economic turning point.

Michael Bordo, an Economics Professor at Rutgers University said, "She's a brilliant academic with incredible credentials and a very agreeable person who will do very well in the job".

The Fed's present Chairman Ben Bernanke is under fire as he failed to prevent the economic crisis.

Yellen believes in paying equal heed to fight unemployment and raise interest rates to battle inflation, which is quite contrary to hawks who are of the opinion that Fed's first and foremost duty is to control price rise. At present the joblessness prevails in the whole market and interest rates are very low.

Martha Olney, adjunct Professor of Economics at UC Berkeley shares that on one hand if Fed raises the interest rates too early, it can strangle the recovery and on the other hand if they raise it too late, the economy may face inflation.

Olney told that Yellen has a very clear understanding of how the lack of regulation the excesses of the financial industry let them face so many problems the past.