Who’ll replace Ben Bernanke?
According to the multiple recent surveys, Janet Yellen, vice-chair of the US Federal Reserve, is a strong favorite to replace the current Fed's Governor Ben Bernanke as his term ends in January 2014. The announcement of the successor’s name is likely to come in September.
The list of candidates is quite long and impressive, so Barack Obama faces a tough choice. The short-list also includes two former Treasury secretaries, Larry Summers and Tim Geithner, and a former vice-chairman of the Fed, Donald Kohn.
The only “drawback” of Ms. Yellen is the fact that she has a reputation as a dove at a time when the easing cycle is likely to be coming to an end. Last week Bernanke announced that the monthly $85 bln of asset purchases would continue as long as there was any question about the US recovery. Recent data releases show that the economy is gradually recovering.