Who will replace Bernanke as the next Fed Chairman? (Part 3)

Who will replace Bernanke as the next Fed Chairman? (Part 3)

By Senior Credit Analyst • Aug 2, 2013 10:24 am

http://marketrealist.com/2013/08/who-will-replace-bernanke-as-the-next-fed-chairman-part-3

Because Bernanke will step down, there’s great speculation on who will replace him

So who is it likely to be the next Bernanke?

The case for Summers

Between the two, Summers certainly has more excitement building around him than Yellen. Summers also has Wall Street credibility—at least more so than Yellen. That’s not to say that Yellen is in any way unqualified. She has a lifetime of experience in macroeconomics and working in the Fed system.

Her weakness as a candidate perhaps is that she’s relatively unknown worldwide compared to Summers—yet this may be as much an asset, given some of Summers’ negative publicity in the past and the somewhat technocratic nature of the Fed.

The case for Yellen

Summers has a history of misspeaks and is potentially abrasive according to multiple media sources, such as the Washington Post and Financial Times. While in normal economic times, the character of the Fed Chairman may not be of such concern, the current situation places a very close eye on the Fed. A single misspeak could easily erode market confidence.

Additionally, Larry Summers hasn’t been a Fed governor and hasn’t been under the direct apprenticeship of the highly venerated Bernanke. So, based on on-the-job experience, it seems that the obvious choice would be Janet Yellen.

Janet L. Yellen

Janet L. Yellen is a member of the Federal Open Market Committee, the vice chair for the Federal Reserve Board, a professor emeritus at the University of California, Berkeley, and was the chairman for the Council of Economic Advisers.

Note: Timothy F. Geithner was the vice chairman for the Federal Open Market Committee, an overseer at the International Rescue Committee, a co-founder for Group of 20, and is a fellow at the Council on Foreign Relations (think tank).

Andrew S. Grove is an overseer at the International Rescue Committee, and was a benefactor at the University of California, Berkeley.

Foundation to Promote Open Society was a funder for the International Rescue Committee, the Brookings Institution (think tank), and the Center for American Progress.

George Soros is the chairman for the Foundation to Promote Open Society, and was a supporter for the Center for American Progress.

David H. Romer is a senior fellow at the Brookings Institution (think tank), a professor at the University of California, Berkeley, and married to Christina D. Romer.

Christina D. Romer is married to David H. Romer, a professor at the University of California, Berkeley, an assistant professor at Princeton University, the chair for the Council of Economic Advisers for the Barack Obama administration.

Ben S. Bernanke was a professor at Princeton University, the chairman for the Council of Economic Advisers, is the chairman for the Federal Open Market Committee, the chairman for the Federal Reserve Board, the chairman for the Federal Reserve System, and a 2008 Bilderberg conference participant (think tank).

Lawrence H. Summers was a trustee at the Brookings Institution (think tank), the National Economic Council chairman for the Barack Obama administration, is a co-founder for the Group of 20, a member of the Council on Foreign Relations (think tank), a distinguished fellow at the Center for American Progress, and a 2008 Bilderberg conference participant (think tank).

Melody C. Barnes was an EVP at the Center for American Progress, and is Barack Obama’s golf partner.

Haas School of Business is a business school at the University of California, Berkeley.

Richard C. Blum is a board member for the Haas School of Business, a regent at the University of California, a member of the Council on Foreign Relations (think tank), married to Senator Dianne Feinstein, and an honorary trustee at the Brookings Institution (think tank).

Robert D. Haas was a board member at the Haas School of Business, an honorary trustee at the Brookings Institution (think tank), and is a member of the Council on Foreign Relations (think tank).  

F. Warren Hellman was a board member for the Haas School of Business, and an honorary trustee at the Brookings Institution (think tank).

Laura D'Andrea Tyson is a professor at the Haas School of Business,  a fellow at the Center for American Progress, was a director at the Council on Foreign Relations (think tank), a trustee at the Brookings Institution (think tank), and the chair for the Council of Economic Advisers.

Haas School of Business is a business school at the University of California, Berkeley.

Janet L. Yellen is a professor emeritus at the University of California, Berkeley, a member of the Federal Open Market Committee, the vice chair for the Federal Reserve Board, and was the chairman for the Council of Economic Advisers.

Carl Shapiro was a member of the Council of Economic Advisers, the assistant attorney general for economic analysis (antitrust) at the U.S. Department of Justice for the Barack Obama administration, and is a professor at the Haas School of Business.