Interesting times ahead as Yellen assumes the controls

It is official, then. Janet Yellen is to become the first female ‘chairman’ of the US central bank next February and as such, she will be in a position to affect all our lives.

True, the Fed chairman’s utterances and decisions may be of less immediate impact than those of her eurozone counterpart in the ECB, but never underestimate the power of America’s money management when it comes to setting the tone and establishing a trend.

The US hegemonic age may be over. Commentators are fretting over America’s huge debt, the shutdown in government, and the prospect of a debt default that could send shockwaves across the world. However, it remains the pre-eminent global and economic power.