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Tags: Bernanke | volatility | markets | Fed

NYT: Focus on End of Bernanke's Tenure Increases Volatility in Markets

By    |   Monday, 01 July 2013 09:03 AM

The tumult surrounding Ben Bernanke's likely departure as chairman of the Federal Reserve in January has added to financial market turbulence, according to The New York Times.

That volatility was triggered by Bernanke's comments June 19 that the Fed may taper its quantitative easing this year.

But the reaction was made worse by President Obama's remarks two days earlier indicating he doesn't intend to re-appoint Bernanke when his term ends Jan. 31, The Times' James Stewart wrote in his column.

Editor's Note:
Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

To be sure, Bernanke has been hinting for months that he will retire then, but Obama brought the issue to the front burner.

The president "instantly made Ben a lame duck before the end of his term," an economist, who insisted on anonymity, told The Times.

"He [Obama] undermined his [Bernanke's] credibility both inside the Fed and in financial markets," the economist said. "Part of the negative reaction in asset prices was because market participants have confidence in Ben, but now he won't be around to oversee that."

Stock and bond prices plunged in the first few days after Bernanke's policy pronouncement, but have since stabilized a bit.

Still, the turbulence is by no means over, whatever Bernanke's status, many experts say.

"We think it is going to be a bumpy summer, a volatile summer," Rebecca Patterson, chief investment officer at Bessemer Trust, told The Wall Street Journal. But she does see stocks emerging higher from the period.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

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FinanceNews
The tumult surrounding Ben Bernanke's likely departure as chairman of the Federal Reserve in January has added to financial market turbulence, according to The New York Times.
Bernanke,volatility,markets,Fed
268
2013-03-01
Monday, 01 July 2013 09:03 AM
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