Re: CNN Breaking News
paul childs wrote:
Subject: CNN Breaking News — President Bush to nominate Ben Bernanke, his top economic adviser, to succeed Federal Reserve Chairman Alan Greenspan, CNN confirms.
I can’t remember hearing anything about this guy, is he an economics version of Harriet Miers? I’m taking the crony status as a given, but beyond that…..?
No, he’s more like Roberts - smart, golden credentials, eminently suited for the job from a bourgeois POV. Bernanke believes in inflation targeting, which is controversial - Greenspan preferred the seat of his own pants to any formal target.
Merrill Lynch’s insty analysis:
CEA Chairman Ben Bernanke (and former Fed Governor) is thought to be the choice, which we believe if true, would not be a surprise to the markets since he has been the leading candidate all along. However, he could stir volatility in the markets if he pushes hard for an explicit inflation target. He could also spark great debate at the Fed. That said, the markets should take his naming in stride, perhaps greeting him with a modest rally in the back-end given his emphasis on inflation. Since Fed speakers have already been hawkish, the short-end should not react much. This would spur a mild bullish flattener for the yield curve.
I just read a WSJ story that says the bond mkt sees BB as an inflationist. I don’t get that.
Doug