26 Jul 2013
Flash: New Fed leader? – Deutsche Bank
FXstreet.com (New York) - There’s been increasing talk about the possibility of Larry Summers being appointed as the next Fed leader, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
“The race is reportedly a close one between the front runner Janet Yellen, and Mr Summers who has emerged as a contender in recent weeks. Some see the potential appointment of Mr Summers as a negative for treasuries compared to Ms Yellen who has a been a key player behind the Fed’s recent policies.”
Indeed, the FT pointed out yesterday that Mr. Summers made “dismissive remarks about the effectiveness of QE” at a conference in April, raising the possibility of a shift in US monetary policy if he were to take the chairmanship.
The FT quoted Summers as saying that QE in my view is less efficacious for the real economy than most people suppose, according to an official summary of his remarks at a conference organized in Santa Monica earlier this year. Overnight, the FT reported that US Senate Democrats are circulating a letter supporting Janet Yellen.
Key quotes
“The race is reportedly a close one between the front runner Janet Yellen, and Mr Summers who has emerged as a contender in recent weeks. Some see the potential appointment of Mr Summers as a negative for treasuries compared to Ms Yellen who has a been a key player behind the Fed’s recent policies.”
Indeed, the FT pointed out yesterday that Mr. Summers made “dismissive remarks about the effectiveness of QE” at a conference in April, raising the possibility of a shift in US monetary policy if he were to take the chairmanship.
The FT quoted Summers as saying that QE in my view is less efficacious for the real economy than most people suppose, according to an official summary of his remarks at a conference organized in Santa Monica earlier this year. Overnight, the FT reported that US Senate Democrats are circulating a letter supporting Janet Yellen.