Wall Street economists favor Yellen over Summers by a ratio of 20 to 1:
David Gulley sent me this survey:
Participants, who include economists, traders and strategists, say monetary policy expertise is the most important quality for a new Fed chairman.
Of the 40 economists surveyed, 20 favored Yellen and one favored Summers.
Does Bob Rubin still work on Wall Street?
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26. July 2013 at 11:24
Even John Taylor beat Summer! If this was due to Summer showing QE skepticism, imagine what would happen if Christy – ‘regime shift’ Romer got ‘listed’.
26. July 2013 at 12:02
Marcus,
You wrote:
“Even John Taylor beat Summer!”
Read my comment here. Evidently Summers defered to Taylor’s expertise in monetary policy in a debate so I guess that’s entirely appropriate:
http://www.themoneyillusion.com/?p=22503#comment-263095
Marcus wrote:
“…imagine what would happen if Christy – ‘regime shift’ Romer got ‘listed’.”
She did get listed, but she received 0% of the vote.
Incidentally Summers was tied with “Don’t know/unsure”. Personally if it’s a choice between Larry Summers and Don’t know/unsure I’ll take Don’t know/unsure anyday.
26. July 2013 at 12:11
Mark
So these guys don´t read!
26. July 2013 at 15:44
I thought that there was no such thing as public opinion.
26. July 2013 at 20:32
Well, let’s look at how the Obama administration has handled political appointments. IRS, DOJ, State, EPA, ATF, HHS have all become ultrapoliticized, many well past the point of illegality. FED is just another three-letter agency; Summers is highly qualified to attack fiscal policies the admin doesn’t like.
27. July 2013 at 05:44
Doug, Again, there is no such thing as public opinion on complex issues like health care spending. There is on simple questions — for or against the death penalty, or who should run the Fed.
27. July 2013 at 06:10
This is a big relief. Wall Street has surely bought some influence with the Democratic elders. Hopefully it is enough to overwhelm Obama’s apparent buddy relationship with Summers. Part of me almost hopes that Summers will be announced and then withdrawn so we can see the market reaction.
27. July 2013 at 06:19
What if they surveyed Wall Street executives rather than economists?
🙂 🙂
27. July 2013 at 07:56
Justin Irving,
You wrote:
“Part of me almost hopes that Summers will be announced and then withdrawn so we can see the market reaction.”
Evidently there already has been reaction in the bond markets:
http://blogs.wsj.com/economics/2013/07/25/is-summers-as-potential-fed-chief-spooking-bond-market/
July 25, 2013
Is Summers as Potential Fed Chief Spooking Bond Market?
By Min Zeng
“The jury is still out on who will be the next U.S. central bank chief, but the Treasury bond market is betting it might be better off under Jenet Yellen rather than Lawrence Summers.
Bond investors believe the Federal Reserve led by Summers would create more anxiety about rising interest rates and a central bank less committed to its current loose monetary policy at a time when concerns over rising interest rates are elevated. Bond yields rise when prices fall. Summers is not seen as a true disciple of Fed Chairman Ben Bernanke.
In contrast, Yellen is believed to be more friendly to bond prices and a boon for bond bulls. Yellen has been perceived as an ultra dovish in Fed policy-making circles and has been known as a close ally to Chairman Bernanke in advocating ultra loose monetary policy to juice the economic recovery. Bond traders expect she would keep rates low for longer.
Bernanke’s term won’t end until early 2014, yet the race to replace him has been increasingly winding up between Yellen and Summers. The buzz got a further boost by a story in Thursday’s Wall Street Journal penned by Jon Hilsenrath and Damian Paletta, which discussed the potential candidates.
Already, worries that Summers may be the front runner and get the job had contributed to the selloff in Treasury bonds on Wednesday, traders said. Thursday, the fear continued to weight down bond prices, trader said. The benchmark 10-year note was recently 9/32 lower in price, yielding 2.624%. Bond prices fall when their yields rise…”