“Can Bernanke’s Successor Get The Fed Moving in the Right Direction?”
It may be harder than usual.
Bernanke’s 2nd term is ending in January. Obama made it clear that Mr. Bernanke has stayed “longer than he wanted” last week.
There is no definite decision on the exit of Bernanke, let alone the replacement of Bernanke. Nevertheless, Cheif U.S. economist at JPMorgan Chase Michael Feroli said “Whoever comes in this time is going to inherit a pretty rigid structure.” (Bloomberg)
“Usually, the Fed chairman comes in with a clean slate to do whatever they want,” Michael said.
A new Fed Head would not be able to quench the momentum of the current QE3 quantitative easing efforts, if he wanted to. Since Bernanke got the “ball rolling”, so to speak, a new Fed Head would be stuck with trying to gradually Taper U.S. stimulus efforts.
Click here to learn “What is Tapering?“.
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