Fed’s Tapering Process Continues
Some analysts expressed surprise at the fact that the Federal Reserve made no mention of the so-called ‘Fragile Five’ – Turkey, Brazil, India, Indonesia and South Africa – emerging economies that have seen rapid declines in their currencies as a result of investors withdrawing, but it was concluded that the unsteadiness of global markets was not expected to upset US markets unduly.
Having been appointed by President George W. Bush in 2006, Ben Bernanke served as chairman of the Federal Reserve for eight years, during which time the country went through its deepest recession since the Great Depression. While many of his peers are of the opinion that his leadership prevented a bad situation from being even worse, his critics have voiced concern that negative consequences of the Fed’s stimulus program will come to the fore in the near future.
Current Vice Chairperson, Janet Yellen, takes over from Bernanke at a time when US stock markets had its worst week in years and foreign currencies are plunging. Analysts note that one of her first challenges will be deciding whether to continue with the tapering of bond-buying and all the implications that brings. Yellen will chair her first Federal Reserve meeting in March.