Five challenges for the new Fed Chair

In her semi-annual monetary policy testimonies to Congress this week, we expect new Fed Chair Janet Yellen to emphasise that the weak tone of some of the incoming data and the turmoil in emerging markets are not enough to prompt the Fed to slow the pace at which it is tapering its asset purchases. More generally, Yellen will face a number of big challenges during her tenure as Chair and we’d be surprised if it was all plain sailing.