Claims that the recovery is an illusion are demonstrably false, but there are pitfalls ahead that the new president and Congress must recognize, including a decline in productivity, the unconventional monetary policy and political paralysis in Washington.

Moderate growth, low inflation, low labor participation rate and a growing wealth gap will be business as usual for a considerable period of time. Fundamental, systemic changes needed for the US to breakthrough its economic doldrums are unlikely in the divided political climate from now until the 2016 elections.

Concerns about the wealth gap and debt service linger to keep the US economy from growing at its full potential.

When Janet Yellen was nominated to the position of Federal Reserve Chair, investors and policy analysts cheered the nomination of the first female head, and paid great attention to the future of quantitative easing, writes Yu Xiang.