Political Scene

FED

Official: Obama wants Yellen as vice chief

President Obama wants to nominate Janet Yellen, the president of the Federal Reserve Bank of San Francisco, to take over as vice chairman of the Federal Reserve, an administration official said Friday.

Mrs. Yellen, who was a top economic adviser to President Clinton, is considered a dove on monetary policy, meaning she is more worried about high unemployment than rising inflation. She would become the second highest ranking Fed official.

Mr. Obama is also considering filling two other vacancies on the Federal Reserve board with Sarah Raskin, the Maryland commissioner of financial regulation, and Massachusetts Institute of Technology economist Peter Diamond, the official said, speaking on the condition of anonymity because the president had yet to make the announcement.

Fed Vice Chairman Donald Kohn’s decision to step down at the end of June opened a third seat on the seven-member board, giving Mr. Obama a chance to put a bigger imprint on the central bank. His selections would have to be confirmed by the Senate.

DIPLOMACY

Axelrod says Israel insulted U.S.

The White House isn’t relenting in its strong criticism of Israel for plans to build 1,600 new apartments for Jews in East Jerusalem, which Palestinians are seeking as their future capital.

Israel announced the construction plans last week just as Vice President Joseph R. Biden Jr. was visiting the region.

President Obama’s chief political adviser said Sunday that the Israelis’ action was both an “affront” and an “insult.” David Axelrod told NBC’s “Meet the Press” that the move undermines the fragile effort to bring peace to the troubled region. He says the timing of the announcement was “very destructive.”

Both Mr. Biden and Secretary of State Hillary Rodham Clinton have condemned the move. But Israel’s government has given no indication it would cancel the project.

TREASURY

Mortgage plan aids about 16 percent

The Obama administration’s mortgage-relief plan has helped only about 16 percent of borrowers who signed up since its launch last year, while hundreds of thousands of homeowners remain in limbo.

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