Leadership at the Fed

The Lehmann Letter  (SM)

Ben Bernanke’s term at the Federal Reserve’s helm is nearing an end. Who’ll be the Fed’s next chair and how will that person govern?

See today’s Wall Street Journal for an excellent article on this topic by Jon Hillsenrath:

“Test for Federal Reserve’s Next Chief: Quelling Dissent”

http://online.wsj.com/article/SB10001424127887323455104579017213638168086.html?mod=ITP_pageone_1

Mr. Hillsenrath discusses the leadership style of recent Fed chairs and also provides a profile of the top contenders to replace Mr. Bernanke.

In this letter’s view it would be surprising if there were little dissent at the Fed. Intense ideological struggle characterizes the economic scene throughout our society’s political realm. Why not at the Fed? The article points out Mr. Bernanke’s efforts to build consensus going forward. He has had good success with that.

It is also this letter’s view that Mr. Bernanke and the Fed have been good allies of president Obama, pursuing an expansionary monetary policy designed to boost aggregate demand. There has been some dissent at the Fed, but it has been minimal.

Among the top contenders to replace Mr. Bernanke, Janet Yellen has consistently advocated  expansionary policies. Ms. Yellen is currently the Fed’s vice chair. Why wouldn’t president Obama appoint her to replace Mr. Bernanke?

(To be fully informed visit http://www.beyourowneconomist.com/)

© 2013 Michael B. Lehmann