In recent years, monetary policy has pushed the economy forward, while fiscal policy has done nothing but clash with that progress. President Barack Obama wisely nominated Janet Yellen as vice chairwoman of the Federal Reserve. She succeeds Ben Bernanke, who, as of early January, announced the slight trim of Quantitative Easing (QE) from $85 billion to $75 billion.  This confirmation relieves one of the tough decisions that Yellen will have to make as the new Chairwoman.

As a seasoned economist—receiving her PhD from Yale and teaching economics at Berkeley, Harvard and the London School of Economics—Yellen’s experience will bring much to the table as she spearheads the economic coalition. She is an acknowledged economic dove and the first female leader of the Federal Reserve—still, Yellen is more than the sum of her accolades. Her expertise in the field, as well as her objectivity, will be crucial as she fills the role of the next Fed. Chairwoman.

When faced with skepticism from Republican lawmakers on the effectiveness, risks and open-nature of what Wall Street calls “easy money” policies, she said: “A strong recovery will ultimately enable the Fed. to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”

Warren Buffett, one of the world’s most influential investors, has expressed his support for QE. According to CNN Money and the New York Times, however, he has reservations about the result of the “grand experiment” on inflation.

Yellen represents two aspects that are vital as the Fed.’s chair. First, she represents the Fed.’s continued low-interest policies while controlling inflation rates, or Quantitative Easing. She must. The economy is growing too slowly, and it is a common consensus that stopping the stimulus could return the nation to recession. Second, she is one of the few Obama policy makers who have not been dragged down by their roles during the financial crisis.

According to the International Monetary Fund, the world’s markets would lose around $2 billion if world banks collectively stopped the stimulus plans of the last four years. The end of QE will happen only in a healthy U.S. economy, which, naturally, is what the Fed. and numerous central banks are seeking to create. An economy is healthy when Gross Domestic Product is high, interest rates are manageable, inflation is controlled, unemployment rates are kept low, among other things.
The Senate confirmed Yellen easily, stabilizing the instability surrounding the uncertainty around the continuation of QE.  As the Fed.’s Chief, Yellen is now the world’s most influential economic policy maker: a challenge and responsibility that Yellen is more than adequately prepared to take on.