The Fed's Surprise and Yellen's Challenge

NEWPORT BEACH â?? The US Federal Reserve sparked a global â?? and now month-long â?? guessing game with its decision on September 18 not to â??taperâ? its monthly purchases of long-term securities. The Fed does not surprise markets often, and this has been especially true of the Ben Bernanke-led Fed, which has devoted enormous time and effort to better communication, greater transparency, and timely management of expectations. Now that President Barack Obama has nominated Fed Vice Chair Janet L. Yellen to succeed Bernanke in January, there is even greater interest in what lies ahead for the worldâ??s most important central bank.