Bernanke's retirement / pending new Fed Chairman

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Bernanke is abandoning the Fed before the real shit hits the fan over the course he has charted. FT is reporting on a possible replacement:
When Wall Street predicts something will happen in Washington, it is often wise to bet on the opposite. Multiple polls show Janet Yellen, vice-chair of the US Federal Reserve, as the strong favourite to be named Ben Bernanke’s replacement as chair – an announcement that is likely by September.

Such certainty is puzzling: there is no evidence President Barack Obama sees Ms Yellen as a shoo-in. Nor does his likely shortlist – which includes two former Treasury secretaries, Larry Summers and Tim Geithner; and a former vice-chairman of the Fed, Donald Kohn – suggest Ms Yellen as the inescapable choice. Each is an impressive name, as are possible outsiders such as Stanley Fischer, governor of the Bank of Israel (who holds dual nationality). Mr Obama has a deep bench from which to choose.

It is my bet he will settle on Mr Summers. ...
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More: http://www.ft.com/intl/cms/s/0/3b5311e6-c232-11e2-8992-00144feab7de.html#axzz2UaOe0o1J
 
It's got to be Yellen because she's a women and Obama is used to having a woman yellin at him. Why do you think he married Michele. :rotflmbo::rotflmbo::rotflmbo:
 
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The word among Federal Reserve watchers right now is that the choice is down to Janet Yellen or Larry Summers as Ben Bernanke’s replacement. I can’t find anyone who really thinks it’ll be Roger Ferguson, Tim Geithner, Alan Blinder, or some other dark horse.

People dismissed Summers’s chances a month or two ago, but he’s increasingly viewed as the leading candidate today — and opinions on this, for reasons I don’t fully understand (though I suspect have to do with a bunch of elite trial balloons going up at the same time), have really hardened in the last 72 hours. So after conversations with plugged-in sources both inside and outside the process, here’s what’s behind the changing odds:
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More: http://www.washingtonpost.com/blogs...ry-summers-is-the-front-runner-for-fed-chair/
 
OK, I'm switching my prediction to Summers because after summers you always get a fall. :rotflmbo:
 
Let me guess: the new Fed chairman will raise interest rates.

I guess Bernanke is there to (probably) reduce QE in late 2013, probably autumn... then the new guy comes in and after the illusion that "hey, the economy is recovering", he will increase QE and raise interest rates.

After they fool us, they will swap retire Bernanke nicely and the big hit of more QE and hyperinflation could come after that like a slap in the face.

Just imagining what could happen...
 
The "choice" (h/t to WilliamBanzai7)

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Who Will Be The Next Fed President?

Who Will Be The Next Fed President? - Janet Yellen Vs Larry Summers

a lil insight on who the president is thinking about for next fed president

 
Cable news chatter this morning is that Summers is now out of consideration and Yellen looks to be the heavy favorite.
 
It was not hard to predice that summer would be over by now. There is some fall in the air and Yelleween is getting closer. Trick or treat?
 
hey, Bill Bonner is still in the running (-:
todays letter from Bill -


By Bill Bonner
Baltimore, Maryland


How smart do you have to be to run the Fed?

Our campaign to become the next Fed chief was dealt a major setback on Friday as reports washed over from Japan saying that President Obama was only days away from appointing rival Larry Summers to the post.

But wait. What's this. "Summers out of Fed race," says the Financial Times this morning.

Hey... we're back in the running!

Let's remind ourselves why Summers was such a fearsome rival:

Yes, Summers is smarter than we are.

Yes, he has a better academic record.

Yes, he is a real economist.

Yes, he has widespread political support and a winning personality.

But except for those things…

Studies have been done. They find that people with lower IQs actually make better truck drivers than people with high IQs. Which puts the critical question right out in the open:

What kind of thing is running a central bank? And, how smart do you have to be to be a successful central banker?

We’ll come back to those questions in a moment. First, let us note that last week was good for stocks and bad for gold. We’re beginning to wonder if the trading patterns of August – sinking stocks… rising gold – were nothing more than that wily old Mr Market messing with our minds again. We’ll have to wait to find out.

Nobody knows what will happen. At least nobody we, the Rogue Economist, have ever met or ever heard of. But we’ve met plenty who THINK they know… and they’re the dangerous ones.

But the Fed’s meddling could have an explosive effect on the stock market. Quantitative easing (QE) has added about $2 trillion to the system’s ‘excess reserves.’ That could be magnified 10 times by the fractional lending system – putting as much as $20 trillion more in purchasing power at work. Suppose it goes into stock prices!

Yes, it is possible.

Yes, dear reader, we’re seeing the worst kind of ‘recovery’ – a return to the bubbly imbecilities of the ‘05 – ‘07 period (keep reading!). Works of art are selling for astronomical prices. High end palaces and old cars are setting new records. Is this reckless money hitting the stock market too? If so, hang onto your hats. It could be breathtaking. It could be wild. It could be crazy…

Summers’ main selling point was that he is a genius. He’s so brilliant that even as a very young man he convinced one of the great names in theoretical finance, Fischer Black, to completely revise his view of how a market works.

Subsequently, Black’s work on pricing options and derivatives (he ended his career at Goldman Sachs) helped win Nobel Prizes for his colleagues. They, then, were instrumental in monumental blow ups, notably of his old partner’s hedge fund, Long Term Capital Management. Goldman itself probably would have come crashing down, too, in the crisis of ‘08-‘09 had not the US Treasury Secretary, former Goldman CEO Hank Paulson, come to its aid.

We don’t know if Black ever thanked Summers for his contribution to these catastrophes.

We don’t know if the Harvard Endowment ever gave Larry sufficient credit for his role in its $10 billion in losses – 2008-2009 – either.

But all that is water under the bridge. Forgotten. Forgiven. History.

So is the fact that Summers seemed to have no idea that the crisis was coming… You can read his public statements for yourself. He was as ignorant of the looming trouble as Ben Bernanke.

All of that is behind us. But what is ahead of us?

According to our friend Gillian Tett at the Financial Times, more of the same:

“Insane financial system lives on post-Lehman,” is her headline.

“The bad news,” she continues, five years after Lehman Bros. went bust, “is that the system is just as insane – perhaps more so.”

Why?

The big banks are even bigger.

The rich are richer.

Fannie and Freddie are still at it.

Shadow banking plays an even bigger role.

And the system depends even more on central bank management.

So you see, the next Fed chief is likely to be an even greater threat to the financial health of the world than Ben Bernanke has been. Which brings us back to our question:

How smart do you have to be to be a good Fed chief? Do you need an IQ of 150? 180? 200?

What do you get for all that computing power? Does an extra 10 points of IQ somehow reduce debt levels? Does it help you create jobs? Does it help you spot a bubble before it pops?

Not on the evidence!

Here's a corollary question: isn't it possible that Larry Summers is too smart for his own good… and too smart for the good of the world economy?

Our view is this: driving the financial system isn't rocket science. It's more like driving a truck. The idea is not to invent new theories and complex innovations. The important thing is not to run off the road!

Larry Summers? Good riddance; he's been in too many accidents already.

Note to Barack Obama: It's not too late. We drive an F-150. Call us.

Until tomorrow,

Bill Bonner
The Daily Reckoning
 
I vote Rand Paul for Fed President. That would be absolutely comical. His first speech would revolve around returning the US to a gold standard and winding down the Fed.
 
Ron Paul wanted to nominate James Grant had he become POTUS. That would have been similarly sublime theater.
 
After months of speculation, it's official: Janet Yellen will be the next chair of the Federal Reserve, succeeding Ben Bernanke, the White House said late Tuesday.
...
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http://www.cnbc.com/id/101093040

Was it she who said, "Tapering? We don't need no stinking tapering."? lol.

Marc Faber said:
"She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don't believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let's tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence."
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http://www.zerohedge.com/news/2013-...ndgame-total-collapse-higher-diving-board-now
 
Well, I was really hoping for a bolder choice like Paul Krugman so we could just get it over with more quickly. Now it's going to be more like a dental procedure watching the Fed trying to save the democratic party from bankrupting the country. :flushed:

This is in no way meant to blame just the democrats. It's just when the Republicans have control of the Treasury they blow up countries, and when the democrats have control they blow up the Treasury.
 
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I wonder what kind of skeletons she has, or what kind of crazy she is being put in place to do right off the bat, that nobody will hear about since we are too preoccupied with the SHUTDOWN...

:noevil:
 
This broad is going to finish the job Bernankenstein set out to do in the first place; destroy America as we know it and usher in a fascist police state to control our every move and milk us for every nickel they can get.
 
We will probably beg Benny boy to return after we discover Yelling-Yellen's super-easing techniques...

Those rough women can do a lot of bad to the economy... Remember Margaret Thatcher...
Women can be very rough in just about anything, surpassing men even.

I wonder what kind of a person Yellen really is? An "iron lady"-type?

Bernanke was "quite a nice guy", to be honest :)

I'm saying this because we were all criticizing Benny boy, not knowing "there's worse". By watching interviews and reading articles, Yelleny-Yellen could do a lot more easing-diarrhea to the dollar.
 
She's in favor of negative interest rates which means if you've got any savings you might as well just hand it over to the government. I'm already missing Ben. :eek:
 
Oh my!

October 29, 2013

Dear Senate Majority Leader Reid,

I am writing to convey my objection to floor consideration of the nomination of Dr. Janet Yellen to Chair the Board of Governors of the Federal Reserve without also considering legislation to bring much-needed transparency to the Fed.

As the Senate debates the nomination of the next head of the Federal Reserve, there is no more appropriate time to provide Congress with additional oversight and scrutiny of the actions and decisions of the central bank. Therefore, I request that my bipartisan legislation, S. 209, the Federal Reserve Transparency Act, be scheduled for an up or down vote concurrently with the Yellen nomination. Similar legislation passed 327-98, with bipartisan support, in the House of Representatives on July 25, 2012. This same bill has been stalled in the Senate for nearly three years.

Accordingly, I will object to any unanimous consent agreement or the waiver of any rule with respect to the nomination of Dr. Yellen without a vote on S. 209. I know you have been a supporter of similar legislation in the past, and I hope that we can work together to pass this important legislation.

Sincerely,

Rand Paul, M.D.
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http://www.paul.senate.gov/files/documents/Reid_Yellenletter.pdf
 
:(

...
Paul has said he will block Yellen unless the Senate takes up his legislation to audit the Federal Reserve. But he said he will likely fail to stop her.

“In all likelihood, yes," Paul said in an interview on Bloomberg's "Political Capital with Al Hunt," which will air Friday night. "But I want to draw attention to the fact that Audit the Fed has been held hostage by [Senate Majority Leader Harry] Reid for three years. And once upon a time, he was for Audit the Fed. We had floor speeches all through the '90s, he would come down here with Sen. [Byron] Dorgan, and they were for auditing the Fed. My question is, let us have at least a vote on this.”
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http://www.washingtonpost.com/blogs...rand-paul-yellen-very-likely-to-be-confirmed/
 
Something obviously happened to Harry Reid and the other Senate democrats once Obama was elected.
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Janet Yellen said today during her confirmation hearing:

"The benefits of the bond buying program were greater than the costs"

For a minute there I was worried we might get a Fed chairperson who cared about the dollar. Whew! :paperbag:
 
The benefits for whom?

lol... Devil is in the details...
 
PMBug said:
The benefits for whom?

lol... Devil is in the details...
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Yellen on gold: “People want to hold (it) when they’re very fearful”

Yellen on stocks: "US stock markets not in bubble territory"

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