By Rachel Goldfarb, originally published on Next New Deal
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Hard Choices on Easy Money Lie Ahead for Fed Chief (WSJ)
Janet Yellen's second year as Federal Reserve Chair begins with the difficult task of creating consensus on raising interest rates, write Jon Hilsenrath and Pedro da Costa.
Ms. Yellen’s judgments could define her tenure as the Fed’s leader. She has taken a more centrist policy view as its chairwoman than she did as vice chairwoman or as president of the San Francisco Fed. In those earlier positions, she advocated for aggressive and sustained easy-money policies. As chairwoman, she has sought a middle ground with colleagues.Her first year in office demanded a great deal of planning, but not many nail-biting decisions. Former Fed Chairman Ben Bernanke had already set policy for 2014 on cruise control, announcing in late 2013 that the Fed would gradually wind down, or “taper,” its monthly bond purchases. Ms. Yellen ended the purchases in October after a series of gradual reductions.
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