The waiting and the speculation are finally over. President Obama nominated Dr. Janet Yellen as his choice for the next Chair of the Federal Reserve. Now the questions become more focused. What does Dr. Yellen’s appointment imply for monetary and financial policies in the United States? And how will her policy priorities affect the average American?
If confirmed by the U.S. Senate, Dr. Yellen will begin her term as Chair just as the Fed begins the long and delicate process of unwinding effects of unprecedented policy actions taken during and after the financial crisis of 2008. It will take someone with Dr. Yellen’s unique combination of technical expertise and political acumen to meet all of the challenges the Fed’s exit will surely entail.
But together with these tough challenges come significant opportunities, and Dr. Yellen stands in a unique position to solidify and extend some of the very real gains that the Federal Reserve has already made, in large part thanks to her assistance.