by Jason Farrell, Daily Reckoning.com.au:
“Wall Street Wants Yellen, Not Summers, as Next Fed Chief,” proclaimed a CNBC headline on Friday.
The media have been buzzing with speculation over the next chairman of the Federal Reserve. Both Janet Yellen and Larry Summers have been named as front-runners for Bernanke’s coveted chairmanship. The Bearded One is expected to retire in January.
The CNBC headline is telling… Wall Street wants the easy money party to continue forever. Larry Summers, however, is a QE skeptic, according to Stephen Gandel at CNN Money:
“Summers, who has emerged as a top choice to be the next Fed head, has regularly questioned the wisdom of the U.S. central bank’s signature bond buying program,” Gandel notes. “Summers has said quantitative easing, which is meant to lower interest rates, has done less to boost the economy than people think, and he has frequently brought up the program’s potential downsides.”
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