It would not be a difficult task for a 2nd year Economics student to slow the taper at a rate that the market tolerates while unwinding the assets that have been purchased over a reasonable term at a reasonable profit. Quite honestly, Yellen could turn down a second term and easily be in position to be remembered as one of the greatest chairpersons in the history of the Federal Reserve.
Hyperbole aside, she could easily squander this low-hanging fruit if she chooses the wrong trajectory or gets distracted by politicians. At this point, the American economy needs to keep its eye on solid economic theory rather than the desires of polarized politicians. Let’s hope Janet Yellen is up to the task.
I hope you are right, but I extremely doubt it. She probably will (has to) print more money than Greenspan and Bernanke together
