Five Questions for the Next Fed Chief

It’s the interview that will determine the course of the U.S. economy for the next four years: Janet Yellen will face the Senate Banking Committee on Thursday, as lawmakers weigh her nomination to head the Federal Reserve.
The leadership transition could not come at a more pivotal moment for the central bank. After stimulating the economy for five straight years following the financial crisis, the Fed now needs an endgame for gently weaning the economy off easy money, and with the perfect timing.

CNNMoney surveyed economists for the top questions Yellen will need to face:
1. What is the lowest unemployment rate we can reasonably aim for?
2. What’s your Plan B, if Fed stimulus fails to get us there?
3. How will you wean the economy off stimulus, without thwarting the housing recovery?
4. What’s the next big bubble?
5. When will inflation pick up?

via Five questions economists think the Senate Banking Committee should ask Janet Yellen – Nov. 13, 2013

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza