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16 Sep 2013
Yellen heads the race for top Fed job
FXstreet.com (Barcelona) - Now that Summers is out of the race for the Fed job consideration, the focus has sifted towards Janet Yellen, current Fed vice-chair, as the primary candidate to replace Mr. Bernanke as Fed chairman.
Should the appointment of Yellen be confirmed, the markets appear to be pricing in a clear continuation of the current Bernanke's policy regime, which implies a less aggressive approach towards 'fast tapering'.
As noted by Joe Weisenthal at Business Insider: "She's generally regarded as being "dovish" meaning more willing to tolerate inflation risk if it means getting unemployment back to normal, though throughout her career she's been flexible and adaptive."
Other potential replacements for the Fed job include, Donald Kohn - Fed Vice-Chair back in 2010, also seen as perma dovish for a continuation of Bernanke's policies. Another one that may fir the bill is Tim Geithner, despite he has publicly resisted to that idea.
Another name previously discussed was Roger Ferguson, "previously chairman of TIAA-CREF and was the on the Fed from 1997-2006, service as Vice-Chair before Donald Kohn" Weisenthal notes.
Should the appointment of Yellen be confirmed, the markets appear to be pricing in a clear continuation of the current Bernanke's policy regime, which implies a less aggressive approach towards 'fast tapering'.
As noted by Joe Weisenthal at Business Insider: "She's generally regarded as being "dovish" meaning more willing to tolerate inflation risk if it means getting unemployment back to normal, though throughout her career she's been flexible and adaptive."
Other potential replacements for the Fed job include, Donald Kohn - Fed Vice-Chair back in 2010, also seen as perma dovish for a continuation of Bernanke's policies. Another one that may fir the bill is Tim Geithner, despite he has publicly resisted to that idea.
Another name previously discussed was Roger Ferguson, "previously chairman of TIAA-CREF and was the on the Fed from 1997-2006, service as Vice-Chair before Donald Kohn" Weisenthal notes.