You may agree with us: the week news has been Bernanke’s non-tapering speech. With the Rupee plummeting, the Real against the ropes … Bernanke says no, it’s not time yet. All analysts expected a reduction of 10bn dollars a month in bond purchases, to go from 85bn to only 75bn. But Bernanke, who will only be in two FOMC before leaving the U.S. central bank, believes the recovery has yet to gain consistency, consumption engine needs to start and credit should be flowing again… So helicopter Ben leaves tapering for his successor. Who?
Buffet says that only Bernanke should take the Fed’s seat. But that uniqueness would clash against with the normality that both Bernanke and the Fed want to show. Janet Yallen seems to be the best positioned candidate, no doubt. She is more than qualified for the job and after Summer’s “voluntary” withdrawal not to get into trouble with his mentor and friend Barack Obama, she is the only name on the table.
But what if this is all a Fed’s manoeuvre? What if the preferred candidate was not Yellen? One analyst from The Corner just raised the doubt.
“I’m on my way to Samarkand,” he said hastily. “Don’t you really see who I mean? It’s crystal clear! Like the Bank of England did with Carney, the Fed is going to choose the best fit for the job: Stanley Fisher.
We tried to convince him to develop the idea, even to write this op-ed for our readers… yet he refused.
“So how much do you want to bet?” we teased him.
He refused to. Apparently a plane ticket to Samarkand is quite expensive these days.