Janet Yellen
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Janet Yellen faces economic challenges

7 January 2014 Last updated at 06:50 GMT

The US Senate has confirmed Janet Yellen as the next head of the US Federal Reserve.

She is the first woman to lead the central bank in its 100-year history.

She is likely to face a difficult road ahead once the current chairman Ben Bernanke steps down after eight years in office.

Although most analysts expect Ms Yellen to continue Mr Bernanke's efforts to boost the US economy by keeping short term interest rates low, she will eventually face unchartered territory once the central bank begins to ease back on its extraordinary measures.

The BBC's Samira Hussain in New York, explains the economic challenges faced by Ms Yellen.