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9 Oct 2013
What to make of Yellen's upcoming appointment as Fed Chair?
FXstreet.com (Barcelona) - Unless a major shocker, tomorrow by 3pm eastern time, Janet Yellen will be officially nominated as the first Democrat to lead the Fed in almost three decades, also the first woman.
When Yellen is confirmed on the top job at the Fed, the monetary policy decision she makes will have a tremendous impact all over the world, as the time at which she will become Chairwoman is one of a kind in which an era of deleveraging is taking effect.
There will be plenty of scrutiny on every single word she states, as the market remains uncertain on the exact timing of the Fed taper. How much inflation Yellen is willing to allow before commencing a QE exit strategy will also be a key question to ask.
As the Financial Times reports in an article from late September: "Before going silent as the race for the Fed chairmanship heated up, her speeches suggested that she was not done yet with enhancing communications – and that offers the single best clue as to how a Yellen Fed would proceed."
FT added: “As the time of the first increase in the federal funds rate moves closer, in my view it will be increasingly important for the committee to clearly communicate about how the federal funds rate target will be adjusted,” Ms Yellen said in April. “I believe further improvements in the FOMC’s communication are possible, and I expect they will continue.”
When Yellen is confirmed on the top job at the Fed, the monetary policy decision she makes will have a tremendous impact all over the world, as the time at which she will become Chairwoman is one of a kind in which an era of deleveraging is taking effect.
There will be plenty of scrutiny on every single word she states, as the market remains uncertain on the exact timing of the Fed taper. How much inflation Yellen is willing to allow before commencing a QE exit strategy will also be a key question to ask.
As the Financial Times reports in an article from late September: "Before going silent as the race for the Fed chairmanship heated up, her speeches suggested that she was not done yet with enhancing communications – and that offers the single best clue as to how a Yellen Fed would proceed."
FT added: “As the time of the first increase in the federal funds rate moves closer, in my view it will be increasingly important for the committee to clearly communicate about how the federal funds rate target will be adjusted,” Ms Yellen said in April. “I believe further improvements in the FOMC’s communication are possible, and I expect they will continue.”