Janet Yellen as new Fed Chief

[Rambo35]

Should Janet Yellen be confirmed by the Senate she will become the next Fed Chief and the first female to head that post. I think she is a bad choice, but of course our personal opinions about her do not matter at all. She has admitted that she did not see the risks in the financial system until AFTER the collapse and Great Recession and she is a dove which means she does not really care about inflation and is more concerned with the unemployment rate.

Do we really want someone like her playing around with monetary decisions?

This should lead to a continuation of current policies which means that the USD will continue to deteriorate while interest rates will remain low (I also think unemployment will remain high). Janet Yellen and the forex market will have to get along one way or the other.
I am looking forward to when she takes over to see how often she will fumble the ball and stir volatility in financial markets.

 

[mumuy]

I don't think so since Yellen is known to be dovish in her FOMC votes, meaning that she might consider to lower down unemployment. And she might not tamper with the stimulus program.

 

[Rambo35]

I don't think so since Yellen is known to be dovish in her FOMC votes, meaning that she might consider to lower down unemployment. And she might not tamper with the stimulus program.

That is the reason why she is a bad choice. Don't be fooled into the common believe that the stimulus program has worked. QE over the long run will make sure the US will never recover. Japan has not been able to exit it for over two decades. The stimulus program was terrible and she will continue it which means the US is in for decades of problems in my opinion.