Thoughts from our Domestic Equity Team
With Larry Summers withdrawing his candidacy for Fed Chairman, it appears that Janet Yellen is now the leading candidate to succeed Ben Bernanke. We think that she would be a good choice. As she is currently the Vice Chairperson of the Fed, she has experience in setting monetary policy, and in doing so during periods of intense economic stress. She has also been a supporter of Bernanke’s extraordinary quantitative easing policies which we felt were necessary to guide the economy out of the financial crisis. We also note that well before the eventual onset of the financial crisis in late 2008 she was an early voice warning about the dangers of the overheated real estate market and loose mortgage lending practices (a Wall Street Journal article written by Alan Binder notes she voiced these concerns as early as 2005).
Submitted by: Jason Sheer, CFA
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