> >Subject: CNN Breaking News
>>-- President Bush to nominate Ben Bernanke, his top economic adviser, to
>>succeed Federal Reserve Chairman Alan Greenspan, CNN confirms.
>
>I can't remember hearing anything about this guy, is he an economics
>version of Harriet Miers? I'm taking the crony status as a given,
>but beyond that.....?
No, he's more like Roberts - smart, golden credentials, eminently suited for the job from a bourgeois POV. Bernanke believes in inflation targeting, which is controversial - Greenspan preferred the seat of his own pants to any formal target.
Merrill Lynch's insty analysis:
>CEA Chairman Ben Bernanke (and former Fed Governor) is thought to be
>the choice, which we believe if true, would not be a surprise to the
>markets since he has been the leading candidate all along. However,
>he could stir volatility in the markets if he pushes hard for an
>explicit inflation target. He could also spark great debate at the
>Fed. That said, the markets should take his naming in stride,
>perhaps greeting him with a modest rally in the back-end given his
>emphasis on inflation. Since Fed speakers have already been hawkish,
>the short-end should not react much. This would spur a mild bullish
>flattener for the yield curve.
I just read a WSJ story that says the bond mkt sees BB as an inflationist. I don't get that.
Doug