Slow and Slower: Summers Withdraws

Summers Withdraws as Potential Fed Chairman: “politics” triumphs again

The forced withdrawal of Larry Summers from the short list to succeed outgoing Chairman Bernanke clouds the policy future. It also gives encouragement to the market that whoever is chosen to lead the current cat-herding cavil at the FED will not be able to abruptly turn off the spigot of current monetary ease. Markets that worry about the present but strongly discount the future should be calmed because a continuing rise in the interest rate on 10 year bond has seemingly been moved to the back burner. Continue reading