The challenges for Janet Yellen if she becomes the next Federal Reserve chair will require both the steely intellect and the personable style that many attribute to her.
Deciding when to slow the Fed's economic stimulus. Forging consensus from a fractious policy committee. Calculating the effects of any economic slowdown from Washington's budget fight. Facing volatile financial markets. Absorbing new members at the Fed.
First, though, Yellen will have to get there: She'll need to overcome Washington's toxic political environment and win confirmation from the Senate.
It's almost enough to make you wonder why she'd want the job, but a better question is....
Yellen is widely seen as a "dove" on Fed policy: She stresses the need to use the Fed's tools to boost growth and reduce unemployment in the sluggish aftermath of the Great Recession, rather than worry about igniting future inflation. [Read more...]