The non-availability of surplus savings in China will affect the demand for assets.
In her own way, Yellen already has signed on to a key aspect of Trump's plan. During a closely watched speech she delivered in October â€” nearly a month before Trump won the election â€” the central bank chief entertained the idea of allowing a "high-pressure economy" to come into existence before tightening the monetary screws.
The policymakers said recent data made them more confident inflation was rising towards the Fed's 2 percent target, and that they were less concerned about a global economic slowdown, according to the minutes, which were released on Wednesday.
The Fed's mandate "isn't to have a perfect world. That only exists in fairy tales, dreams and in your econometric models," Boockvar said in a recent note to clients. He believes that the Fed's monetary has been far too accommodative under Yellen as well as under Ben Bernanke.
The US central bank this week held its target short-term interest rate range at 0.25 percent to 0.5 percent. The Fed indicated it could hike twice this year, but as rates remain below historical averages, many market watchers have wondered what the Fed could do to respond to another potential slowdown.
El-Erian added that Wall Street has yet to price in increased political uncertainty stemming from the rise of protest politics in the US and Europe
With the Fed considering a rate hike that would be the first in nine years, he said it's not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.
The lower growth in the US economy is not a hangover from the Great Recession, Bernanke said, noting that more capital investment is needed to boost growth.
In private and in public at last week's global central banking conference in Jackson Hole, the message from visiting policymakers was that the Fed has telegraphed an initial monetary tightening and, following a year-long rise in the dollar, financial markets globally are as ready as they can be.
The world of zero interest rates has outlived its usefulness, according to a chorus of influential bankers, watchdogs and economists anxious about asset bubbles and wealth inequality.
As investors look ahead to this week's Jackson Hole symposium for central bankers, one of the key worries is that attendees from the US Federal Reserve will make more hawkish statements than expected â€“ in particular, signaling early US interest rate rises.
Bernanke was paid at least USD 250,000 for his first public speaking engagement, in Abu Dhabi, since stepping down in January, according to sources familiar with the matter.
The comments, from the heads of the Federal Reserve banks of St. Louis, San Francisco and Atlanta, freshen the message in the minutes of the Fed's most recent policymaking meeting, also released Wednesday, which showed many thought only a big change in outlook could disrupt further measured reductions in purchases.
Yellen inherits the mantle of the world's most powerful central banker from Ben Bernanke, who guided the US and the global financial system through its deepest crisis since the 1930s during his eight years in the job.
Yellen, 67, who succeeds Ben Bernanke as the Fed begins to unwind unprecedented efforts to boost the US economy, will be sworn in at 9 AM EST (1400 GMT) on February 3. She will have full authority as the top central banker from Saturday until the swearing-in ceremony, according to the Fed.
Overall signs of improvement in the US economy suggest Fed officials will stay on track to cut monthly purchases of Treasuries and mortgage-backed securities by USD 5 billion each, bringing the total of their monthly asset purchases to USD 65 billion.
In the RBI meeting, in most likelihood, some of the recommendations announced last week would be formalised while maintaining a status quo on rest of the monetary parameters.
The Fed's policy-setting committee meets on Tuesday and Wednesday. Another cut to the monthly purchase of Treasuries and mortgage-backed securities - to USD 65 billion from the current USD 75 billion - is all but certain, based on policymakers' recent comments.
As described by Yellen, the Fed could achieve a faster reduction in US unemployment at the modest price of a bit more temporary inflation than it would get if it set policy with rigid respect for its 2 percent inflation goal.
In his final major address as Federal Reserve chairman, Ben Bernanke reiterated that the Fed will remain committed to a highly accommodative policy despite beginning to taper.
Bernanke, who steps down as head of the US central bank at month's end, gave an upbeat assessment of the US economy in coming quarters. But he tempered the good news in housing, finance and fiscal policies by repeating that the overall recovery "clearly remains incomplete" in the United States.
The turnaround in the last quarter of the calendar was nothing short of miraculous, just when a free-falling rupee threatened to wreak havoc with the economy.
Economic growth is expected to accelerate next year, boosting employment and consumer purchasing power. But with markets repeatedly notching all-time highs, that may not translate to market gains as dramatically as in 2013.
At a time when the monthly jobless count has taken on even more importance than usual, the move in Washington toward ending the emergency compensation immediately would drop the unemployment rate below 7 percent, according to an analysis from Joe LaVorgna, chief US economist at Deutsche Bank.
The Democrat-led Senate voted 59-34 to move forward with the nomination, indicating ample support for her confirmation. A final vote is set for January 6 when the Senate returns after a holiday break.