Yellen expected to bring continuity to top job in monetary policy

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News that Janet Yellen will be nominated as successor to Ben Bernanke as chairman of the US Federal Reserve has been welcomed by market watchers, with Yellen expected to bring a wealth of experience to the role.

Joshua Raymond of City Index says that while "there is no real surprise here" after Larry Summer's withdrawal from the running her appointment should "bring a sense of normality to the market on the basis that she is widely seen as a dove, favouring accommodative monetary policy and this follows a similar tone to that of Ben Bernanke."

Yellen's dovishness is expected to mean "rates lower, and tapering held back, for longer" says Mike van Dulken, head of research at Accendo Markets.

If there are policy differences between Yellen and Bernanke, Rob Wood of Berenberg says that it will be in their approach to Wall Street versus Main Street. Wood believes that Yellen "may be more supportive of jobs and the real economy than the Bernanke led Fed".