Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Once Larry Summers “exited” (i.e. was rejected) as a candidate, all eyes turned back to what was seen earlier as the obvious choice – Janet Yellen. Yesterday after the close President Obama did what everyone expected and nominated her for the head job at the Federal Reserve. Many consider her an uber dove… futures initially spiked on the news but not as much as one would expect, mostly because this was a surprise to no one. But still considering the damage in the markets of late, you’d think it would have provided some more juice. Perhaps the algos go to sleep after 4 PM. Here are some blurbs from the WSJ, and Reuters.
- The nomination will put Yellen on course to be the first woman to lead the institution in its 100-year history. The advocate for aggressive action to stimulate U.S. economic growth through low interest rates and large-scale bond purchases would replace Ben Bernanke, whose second term as Fed chairman expires on January 31.
- If confirmed by the U.S. Senate, which is expected to endorse her, she would provide continuity with the policies the Fed has established under Bernanke. Analysts say she would move cautiously in reining in policies in place to shore up the world’s largest economy.
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