Senate sets Monday vote on Janet Yellen to head Fed

WASHINGTON Thu Jan 2, 2014 4:36pm EST

U.S. Federal Reserve Vice Chair Janet Yellen testifies during a Senate Banking Committee confirmation hearing on her nomination to be the next chairman of the U.S. Federal Reserve, on Capitol Hill in Washington November 14, 2013. REUTERS/Joshua Roberts

U.S. Federal Reserve Vice Chair Janet Yellen testifies during a Senate Banking Committee confirmation hearing on her nomination to be the next chairman of the U.S. Federal Reserve, on Capitol Hill in Washington November 14, 2013.

Credit: Reuters/Joshua Roberts

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WASHINGTON (Reuters) - Janet Yellen came a step closer to final approval as the Federal Reserve's next chair after the U.S. Senate set a Monday vote on President Barack Obama's choice to succeed Ben Bernanke.

The Senate is expected to vote at around 5:30 p.m. EST Monday on Yellen, according to a Senate Democratic leadership aide.

Yellen, who would become the first woman to chair the U.S. central bank, would take the reins on February 1, one day after Bernanke ends a two-term stint during which he reached deep into the Fed's monetary toolbox to try to revive an economy hit by a massive financial crisis that sent it into the worst downturn in decades.

Yellen has been deeply involved in the decisions to press the Fed into uncharted monetary policy waters, as the Fed's vice chair since 2010 and before that as chief of the San Francisco Fed.

As she steps into her new role, her biggest challenge will likely be to begin to pare back the Fed's crisis-era stimulus. The bank took a first step in that direction last month when policymakers voted to pare its massive bond-buying stimulus program to $75 billion a month from $85 billion.

The Senate on December 20 voted 59-34 to move forward with Yellen's nomination, indicating she had enough support to win confirmation.

Bernanke's second four-year term expires on January 31.

(Reporting by Richard Cowan; Additional reporting by Ann Saphir in San Francisco; Editing by James Dalgleish)

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