Janet Yellen was confirmed by the U.S. Senate Monday as chairwoman of the Federal Reserve for four years.
The Senate voted 56-26 to install Ms. Yellen this month, when the term of current Chairman Ben S. Bernanke ends.
Currently vice chair of the Fed, Ms. Yellen is former president and CEO of the San Francisco Federal Reserve Bank.
“Being confirmed is like receiving a trophy before a marathon,” said Zach Pandl, senior interest rate strategist with Columbia Management in an interview. “Being named is an honor, but she has an extremely difficult task in front of her. In our view, exiting from (the Fed's) unconventional policy could prove just as difficult.”
Ms. Yellen's biggest challenge is the economy, said Robert Tipp, managing director and chief investment strategist at Prudential Fixed Income, in an interview. “The main thing is that there are a lot of moving parts, and the most important moving part is the U.S. economy. Janet Yellen is not an arch dove, but given the situation right now, I think she's a firm believer the U.S. economy needs help. I think people are going to see over the long term that she is very even-handed.”