Don't expect many changes to monetary policy under Janet Yellen, the vice chairwoman of the Federal Reserve who has emerged as the front-runner to replace Ben Bernanke as the Fed chairman after Larry Summers bowed out, experts said.
"I think she will be pretty similar to Bernanke," said Jeffrey Frankel of the Kennedy School of Government at Harvard.
Yellen, who became a member of the Fed's board of governors in 1994, would be the first woman to run the Fed, and has been a favorite of Sen. Elizabeth Warren.
"There's going to be a continuation of Federal Reserve monetary policy," Eric Stein, a money manager at Eaton Vance Management, told Bloomberg, who echoed many other analysts.
According to a Bloomberg Global Poll last week, Summers was expected to tighten Fed policy more than Yellen.
Because he doesn't expect big changes, Frankel said the change will not have a significant effect on the economy long term.
"I think we'll continue what we've been doing," he said. "Unemployment will continue to come down gradually as it has, I think growth will continue around 2 percent.
Analysts said Yellen's wealth of experience bodes well for her.
Max Wolff, chief economist and strategist for ZT Wealth in New York, said Yellen is "eminently qualified," and has performed well as the Fed's No. 2 since 2010 and as president of the San Francisco Fed.
"That's a lot of high-level experience," Frankel said.
President Obama is expected to announce his choice for the chairman's position as soon as this month.
Summers, who led Obama's National Economic Council in 2009 and 2010, has been described by the president as instrumental in the nation's recovery from the recession. Still, he faced significant criticism from lawmakers and economists, 350 of whom signed a letter to Obama last week objecting to a possible nomination of Summers.
Several Senate Banking Committee members had also expressed reservations over a Summers nomination, including Sen. Elizabeth Warren. Any nomination for the position would have to go through the Senate Banking Committee before it hit the Senate floor.
The markets surged today on the news, with the Standard & Poor's 500 hitting within five points of its record high close of 1,709, though it gave up some of those gains in the afternoon.
The Dow Jones industrial average closed up 118.72 points, or 0.8 percent and the Standard & Poor's 500 rose 9.61 points, or 0.6 percent.
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