Hensarling also said the Fed's “unprecedented stimulus efforts” have “camouflaged the true cost of our deficit, encouraged more government spending, and endangered the central bank's independence and credibility.”

In addition, Hensarling warned that the Fed's actions have increased America's “risk of inflation in the future and in the present transferred wealth from middle income families who save and invest conservatively to the wealthy who can afford to make riskier, higher-yielding investments.”

“With our economy stuck in the slowest, weakest so-called recovery of modern times, my hope is Dr. Yellen and Fed governors will realize that continuing the status quo brings Americans little to no benefit but it presents outsized risks,” he said.

Ranking Member of the House Financial Services Committee Rep. Maxine Waters (D-Calif.) praised Yellen's nomination.

“Ms. Yellen has demonstrated a unique understanding of the impact of the Federal Reserve's policies on the middle class, particularly the crucial balance between stable prices and low unemployment,” she said in a statement on Wednesday.

“During the crisis, she advocated for the urgent need to implement financial reform quickly in order to avoid another meltdown. As chair, I am hopeful that Ms. Yellen will continue to push for policies that address the still unacceptably high rate of unemployment,” Waters said.

She added that Yellen's judgment on the economy has been validated time and again.

“When many economists were optimistic about unprecedented growth in the economy – she saw the bubble for what it was and predicted disaster in the banking system,” said Waters.

Senate Banking Committee Chairman Tim Johnson (D-S.D.) pledged to quickly move Yellen's nomination forward.

“I commend President Obama on his selection of Dr. Yellen to be the first woman to serve as Federal Reserve Chairman. She has a depth of experience that is second to none, and I have no doubt she will be an excellent Federal Reserve Chairman,” he said in a statement on Tuesday.

“In addition to having more than a decade's worth of experience working on monetary policy at the Federal Reserve, Dr. Yellen has also worked at the White House as Chairman of the Council of Economic Advisors and taught at some of world's most prestigious universities. I will work with Ranking Member Crapo and the rest of the members of the Banking Committee to move her nomination forward in a timely manner,” he added.

NAFCU President/CEO Dan Berger said he looks forward to working with Yellen on issues affecting credit unions.

“NAFCU congratulates Gov. Yellen on her nomination. We appreciate Gov. Yellen's readiness to hear credit unions' concerns affecting their members and communities,” Berger said in a statement Tuesday night. “Upon confirmation, we look forward to working with her and the Federal Reserve Board.”

An NAFCU press release noted that Yellen met with NAFCU's board last December at Federal Reserve headquarters to discuss the association's 2012 Report on Credit Unions and related issues.

CUNA told Credit Union Times on Wednesday that it would not be releasing a statement on Yellen's nomination.

Current Chair Ben Bernanke's term ends on Jan. 31.