The media seems to think that if Yellen is re-nominated as Fed Chair, stocks will skyrocket … but there’s probably not as much difference between potential Chairs as we think.
During a speech last week, Yellen acknowledged that even a little downturn, which would necessitate a few percentage points of easing under “normal” circumstances, could require additional use of “unconventional” monetary policy. Obviously, this is true … if your main weapon is to lower rates, and rates are near zero, you have to find another weapon.
Continue reading “Are the potential nominees that different?”