Yellen to continue Bernanke's work, but gradual tapering is key - Brzeski

YELLEN TO CONTINUE BERNANKE'S WORK, BUT GRADUAL TAPERING IS KEY - BRZESKI It's a dawn of a new era in the US, when Janet Yellen takes over at the Federal Reserve. But Carsten Brzeski, ING Senior Economist, warns that she must implement the tapering strategy started off by her predecessor and keep markets informed of any changes that could affect rates. SHOWS: LONDON, ENGLAND, UK (JANUARY 31, 2014) (REUTERS - ACCESS ALL) 1. ING SENIOR ECONOMIST, CARSTEN BRZESKI, SAYING: JOURNALIST ASKING CARSTEN BRZESKI: "It looks like a testing start to the job with the Fed's plan to reduce bond buying blamed for much of the turmoil in emerging market currencies. Joining me now is ING Senior Economist Carsten Brzeski. Carsten, with Janet Yellen, is it a case of softly, softly as she goes?" CARSTEN BRZESKI: "No, I think exactly that will be it. The nice thing is that Mr. Bernanke already kind of did part of her job because he started the tapering, so this makes her life easier. So what she will have to do right now is really kind of implement the tapering strategy, make clear to markets that it's a gradual tapering, make clear to markets that tapering does not mean tightening so really communicate it very clearly that any rate hike in the US will not happen this year but at the earliest in 2015." JOURNALIST: "At the same time, Carsten, we've seen all this turmoil in the markets. When are we going to see perhaps countries in the emerging markets put on capital controls? Are we at that nuclear option yet?" CARSTEN BRZESKI: "No. I really think capital restrictions are the nuclear option because that is also something that financial markets will never forget. What we have- we do see a slight stabilization right now. I think really things will have to get much worse before countries, governments, central banks in emerging markets would draw this nuclear option." JOURNALIST: "Okay. We've got the ECB next week as well. Well later today, there'll be some inflation numbers. How key is this and do you think there is a risk of disinflation?" CARSTEN BRZESKI: "I thi...