Hilsenrath: White House Preparing Bernanke's Replacement

Tyler Durden's picture




 

It's been a long time since Hilsenrath actually reported news instead of serve as a leak dissemination service for the New York Fed. Today was one of those time with news from the WSJ that the Obama administration, and specifically Jack Lew, has begun assembling a short list of candidates for the Federal Reserve chairmanship, in the expectation that Ben Bernanke won't seek reappointment when his second term ends in January. According to Hilsenrath, since the decision on whether the Chairsatan stays or goes is all his, Bernanke may decide to stay for a few more years of QEasing, however he won't: "many of Mr. Bernanke's friends and associates believe he wants to step down when his term expires, after nearly eight years overseeing the central bank's response to the most serious economic downturn since the Great Depression."

From the WSJ:

Obama administration officials have spoken to the Senate about putting forward a nominee so that legislative staff can begin the vetting process and prepare for confirmation hearings, according to a senior Senate aide. "They've indicated that they are working to get us a nominee in time for us to do our due diligence," the Senate aide said.

 

People familiar with the process wouldn't divulge any names on the short list, but said there was no front-runner. The White House is still in an early stage of the process and might not announce its selection until the early fall, they said.

 

White House spokeswoman Amy Brundage said in a statement Thursday, "We decline to comment on speculation on any personnel matters until the president has made his decisions and is ready to announce them. The president believes that Chairman Bernanke is a vital and excellent partner in promoting our economic recovery, and he continues to serve admirably and with distinction during this important time for our country."

 

The president, while praising Mr. Bernanke in a television interview earlier this month with Charlie Rose, said Mr. Bernanke has "already stayed a lot longer than he wanted or he was supposed to." The two met at the White House in February and Mr. Bernanke said in March they had spoken "a bit" about his future. He declined at a press conference last week to say any more about his future.

 

Sen. Bob Corker (R., Tenn.), a member of the Senate Banking, Housing and Urban Affairs Committee, which will hold confirmation hearings on any nominee for Fed chairman, said in an interview: "I would be very surprised if he stayed, and I do not believe that he will."

Who are Bernanke's replacements according to Hilsenleak? No new names here: Yellen and Larry "Mr Burns" Summers as frontrunners, and then warming the bench are Blinder, Ferguson, Romer, Geithner, and Kohn now that Fischer is going back to the BOI.

Janet Yellen, the Fed's vice chairwoman, is widely seen in financial markets as the leading contender for the job. Ms. Yellen is a Democrat who served as the chairwoman of the Council of Economic Advisers under President Bill Clinton in the 1990s, and has held a variety of posts at the Fed, including governor, San Francisco Fed president, and Mr. Bernanke's second-in-command since October 2010.

 

Ms. Yellen has been an outspoken advocate of the Fed's easy-money policies. Her involvement in formulating those complicated policies could give her an advantage in the eyes of the White House, since she would have insight into how they work and the challenges of changing them. But she also has drawbacks that could work against her—including a lack of market experience at a time when markets are on edge, in addition to having little exposure to top White House officials.

 

Lawrence Summers, the former head of Mr. Obama's National Economic Council, could be another top contender. Mr. Summers, who served as Treasury Secretary under Mr. Clinton, is close to many of Mr. Obama's top economic advisers and is widely viewed in the administration as a top economist. But he faces obstacles, too, including questions about how well he would fit into the Fed's collegial and consensus-oriented culture: Mr. Summers has a reputation as a blunt-spoken and sometimes tempestuous leader.

 

Mr. Obama has a deep bench of other respected economists among Democrats to choose from, including two former Fed vice chairmen, Princeton University professor Alan Blinder and Roger Ferguson, who advised Mr. Obama's first campaign for president in 2008, and Christina Romer, the former head of Mr. Obama's Council of Economic Advisers. Timothy Geithner, Mr. Obama's former Treasury Secretary, is sometimes mentioned in markets as a potential successor to Mr. Bernanke, though Mr. Geithner has said he doesn't want the job.

 

Former central bankers, including Donald Kohn and Stanley Fischer, are sometimes mentioned by outside observers as potential candidates. And it is possible a surprise candidate could emerge.

 

History doesn't provide great insight into how soon Mr. Obama will act. Past nominations have been made anywhere between June and October. He announced Mr. Bernanke in August 2009. Mr. Bernanke was originally nominated to run the Fed by President George W. Bush in October of 2005. Mr. Bernanke's predecessors—Alan Greenspan and Paul Volcker—were nominated in June and July, respectively, to their first terms.

How will the market deal with the volatility and insecurity associated with the great rotation of the world's most powerful person? It's unclear, but it is certain that it will be spun as bullish to quite bullish by Comcast's financial comedy and home advertising station.

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Thu, 06/27/2013 - 16:13 | 3700679 ParkAveFlasher
ParkAveFlasher's picture

Wildcard, bitchez!

Thu, 06/27/2013 - 16:14 | 3700688 true brain
true brain's picture

what a charade.

Thu, 06/27/2013 - 16:15 | 3700702 YuropeanImbecille
YuropeanImbecille's picture

let's play "pick a joo"

Thu, 06/27/2013 - 16:17 | 3700714 true brain
true brain's picture

Right. the real decision comes from London City, the den of pure evil. Obozo and those goons got no say whatsover. get real.

Thu, 06/27/2013 - 16:22 | 3700743 walküre
walküre's picture

Maybe a middle eastern guy who unveils (pun) a new Shariah banking system? Our President's name is Barack Hussein Obama and we are still alive. Why not make a muslim banker the head banker of the world? Couldn't be worse.

Thu, 06/27/2013 - 16:29 | 3700784 francis_sawyer
francis_sawyer's picture

I wonder who "Lew" is considering...

~~~

Thinking... THINKING... THINKING!!!...

Thu, 06/27/2013 - 16:33 | 3700814 Bay of Pigs
Bay of Pigs's picture

Give us the DUDLEY!!!!

 

Thu, 06/27/2013 - 16:37 | 3700831 NotApplicable
NotApplicable's picture

Benron is gonna get Hoovered!

Thu, 06/27/2013 - 16:44 | 3700865 Scarlett
Scarlett's picture

GIDEON GONO FTW!

Thu, 06/27/2013 - 16:55 | 3700897 SafelyGraze
SafelyGraze's picture

it will be jim grant, of course

yawn

what a boring choice

Thu, 06/27/2013 - 16:59 | 3700912 Popo
Popo's picture

Krugman 100%

Thu, 06/27/2013 - 17:06 | 3700938 prains
prains's picture

They'll go down to Shalom Depot and grab the first guy with an orange bib they can find

Thu, 06/27/2013 - 16:59 | 3700887 ZerOhead
ZerOhead's picture

Gideon is too uncommited to the kind of serious printing we need to see to get us out of this debt trap/economic clusterfuck.

I think that it is none other than Larry Fucking Summers who should Captain this good ship... the USS Federal Reserve Inc. ... on it's last leg to it's watery grave.

Smartest guy in the room that nobody can stand/understand bar none.

Thu, 06/27/2013 - 17:42 | 3701073 NoDebt
NoDebt's picture

If Janet Yellen came out tomorrow and said she had black and/or native American ancestors, she'd be a lock.

(Oh, boy, NOW I said it.  Bad me.  Bad BAD me for thinking that!  I'm going to wash my brain out with soap for that one.)

Thu, 06/27/2013 - 18:26 | 3701221 knukles
knukles's picture

LOL
Worked for Lizze Warren, no?

 

Thu, 06/27/2013 - 19:23 | 3701363 Nick Jihad
Nick Jihad's picture

Yeah, but Paulson has a big bazooka.

Thu, 06/27/2013 - 17:21 | 3700901 TruthInSunshine
TruthInSunshine's picture

Fat Larry is probably out of contention, as is Timmmay!!!!!, actually.

They're now both plump VIP pets of the Plutocracy ("they make great pets" h/t Jane's Addiction), and have earned their keep (for now) as carriers of many brown bags for The Purple-Red Rothschild Gang - Larry by fukkin' sittin' on his fat ass and running interference with any and every proposal that even had the potential to be considered, let alone implemented, and rain on Wall Street's plans (no matter how effifacious it would have been for Main Street), and Timmmay!!! because he gave such great bankter head (the upper echelon of The Money Masters have unclean BDSM fantasies involving elves, too).

As to Yellen:

Janet Yellen, the Fed's vice chairwoman, is widely seen in financial markets as the leading contender for the job. Ms. Yellen is a Democrat who served as the chairwoman of the Council of Economic Advisers under President Bill Clinton in the 1990s, and has held a variety of posts at the Fed, including governor, San Francisco Fed president, and Mr. Bernanke's second-in-command since October 2010.

 

Ms. Yellen has been an outspoken advocate of the Fed's easy-money policies. Her involvement in formulating those complicated policies could give her an advantage in the eyes of the White House, since she would have insight into how they work and the challenges of changing them.

 

Aside from that little (or ginormous, to be far more accurate) LIE that she would have knowledge of how to "change," let alone reverse, QEinfinity, which is nothing less than laughable, she fits all the "correct" criteria (woman, monetary policy & I-have-an-idea-let's--print-and-throw-bulk-volume-fiat-at-the-wall-and-every-problem slut/whore, dogmatic & incapable of flexible or creative thinking, posh & coasty, Druish Princess - don't think it's an anti-Druish comment of some type, it's actually from Spaceballs, damnit, and I have Druish friends and/or may even be a little Druish myself), for a nomination by an anti-meritocracy establishment, and I believe the theme song from The Jeffersons says (or sings) it best:

Movin' on Up


Well we're movin on up,
To the east side.
To a deluxe apartment in the sky.
Movin on up,
To the east side.
We finally got a piece of the pie.

 

Fish don't fry in the kitchen;
Beans don't burn on the grill.
Took a whole lotta tryin',
Just to get up that hill.
Now we're up in the big leagues,
Gettin' our turn at bat.
As long as we live, it's you and me baby,
There ain't nothin wrong with that.

 

Well we're movin on up,
To the east side.
To a deluxe apartment in the sky.
Movin on up,
To the east side.
We finally got a piece of the pie.

 

Thu, 06/27/2013 - 17:38 | 3701053 Meat Hammer
Meat Hammer's picture

Pets - Porno For Pyros

Just giving credit where it's due.  Great song.

Thu, 06/27/2013 - 18:07 | 3701170 TruthInSunshine
TruthInSunshine's picture

Ich danke schön

Thu, 06/27/2013 - 16:33 | 3700815 walküre
walküre's picture

Whoever heard "Mazeltov" at their graduation from Princeton, Yale or Harvard

Thu, 06/27/2013 - 16:33 | 3700816 Divided States ...
Divided States of America's picture

I KNOW I KNOW!

Is it something that starts with a J????? with a name that starts with a J??????

Thu, 06/27/2013 - 16:35 | 3700825 kaiserhoff
kaiserhoff's picture

Let's replace Ben with a potted plant that will sit there and do nothing.

OMFG what an improvement that would be.

Thu, 06/27/2013 - 16:31 | 3700805 Renewable Life
Renewable Life's picture

Sorry Brother, you've been confused by the propaganda and bullshit flowing from the "three little letter" operations!  If you think religion has a fucking thing to do with the bullshit we have been thru in this Country over the last 35+ years, I'm jealous of your bliss!!

One word explains it all.........RESOURCES! Period, end of story, everything else, including this bullshit "war on terror" non sense, gay rights bullshit, abortion bullshit, all of it, is JUST THEATRE, manufactured to get you all puffed up about one aspect of it or another, meanwhile the invasions, wars, corporate takeover of the Country and the Planet, and the shredding of our Constitution, ensues!! 

Every fucking thing that is happening, has happened, and will happen in the future on a global level, is about RESOURCES, not a fucking thing else!!!

Thu, 06/27/2013 - 16:37 | 3700829 walküre
walküre's picture

Yes, but it matters which currency the resources are traded in and ultimately which religious grouping benefits the most in a world that is threatened at gunpoint to accept the paper or else.

Thu, 06/27/2013 - 19:00 | 3701305 augustusgloop
augustusgloop's picture

no way. shariah is pro gold. obama will not, cannot go for that. 

Thu, 06/27/2013 - 16:19 | 3700722 Divided States ...
Divided States of America's picture

If lord blankfiend grows a beard...he can resemble the bernank....

CNBC should be renamed Criminal News and Bullshit Channel because of the guestlist they brought on today.

Lord Blankfiend, Hanky Paulson, Larry Fuckin Fink.....all fuckin criminals

Thu, 06/27/2013 - 17:43 | 3701080 Meat Hammer
Meat Hammer's picture

Maria, I'm coming on the show today.  Go to the cleaners and pick up my blue, checkered, Camp David-esque, button-down shirt.  

And don't wear panties.

-Hank

Thu, 06/27/2013 - 18:30 | 3701231 knukles
knukles's picture

Oh Jesus H Fucking Christ.
That's disgusting.
Butaraoma's snortch.

Fuck me.

 

You oughta be sent to the penalty box for an hour.

Thu, 06/27/2013 - 19:28 | 3701375 Nick Jihad
Nick Jihad's picture

"She said that 'any love is good lovin', so i took what i could get"   H/T BTO

Thu, 06/27/2013 - 20:16 | 3701521 espirit
espirit's picture

I just threw up in my mouth, worse than the death smell.

Thu, 06/27/2013 - 16:24 | 3700754 Renewable Life
Renewable Life's picture

Bye Uncle Ben!  I wish I could say that with your departure, would come a new era of sound money, free market capitalism and small government!  But I'm sure your replacement will be an eager beaver to please their masters at whatever "firm" they came from!  MOAR QE, More Debt will follow!

Thu, 06/27/2013 - 16:44 | 3700795 Divided States ...
Divided States of America's picture

this asshole got lucky....he could leave gracefully after he used us as guinea pigs for his experiment for the past five fuckin years...he knows he is losing control of everything and things will soon be blowing up in his face soon...and the fucker got to exit before the real shit hits the fan. I wished someone would run him over one day because thats what he truly deserves. Not going back to Princeton to teach more theoretical shit that means jack shit.

look at what happened to AAPL shares when Jobs left....this will happen to the stock market too when the Bernank leaves....he was the only one who knew what he was doing even though its been all wrong...

Thu, 06/27/2013 - 18:31 | 3701238 knukles
knukles's picture

Maybe they'll let him share a cubicle with Krugman at Princeton or wherever the hall it is....

Thu, 06/27/2013 - 20:18 | 3701530 espirit
espirit's picture

In our worst nightmare, he'll be in the bunk between us at Camp Fema.

Fri, 06/28/2013 - 00:09 | 3702387 Andre
Andre's picture

Ben knows what's coming.

He just wants a head start.

Thu, 06/27/2013 - 16:25 | 3700762 Midasking
Midasking's picture

Markets hate uncertainty.. markets need to be absolutely certain they will be propped up forever... http://tinyurl.com/mem7o7x

Thu, 06/27/2013 - 16:43 | 3700864 g'kar
g'kar's picture

The Hilsenrath Ramp up to the next FED puppet.

Thu, 06/27/2013 - 16:14 | 3700683 FL_Conservative
FL_Conservative's picture

Yep, need to have someone that can keep goosing the markets.  It's for the people, you know.

Thu, 06/27/2013 - 16:21 | 3700736 Divided States ...
Divided States of America's picture

Now we know why this J-BAG aint going to J-HOLE this summer. let's hope J-BITCH (J-YELLEN) aint the one going in his place.

Thu, 06/27/2013 - 16:39 | 3700840 FL_Conservative
FL_Conservative's picture

As if the short list of Christina Roemer and Tim Geithner are any better.  Talk about some "short bus" candidates.  Geez....

Thu, 06/27/2013 - 16:53 | 3700894 Kinskian
Kinskian's picture

 

I think Rachel Jeantel is available.

Thu, 06/27/2013 - 16:13 | 3700684 Banksters
Banksters's picture

LOL.   Yeah, that is how it works.  A skinny black guy from Chicago picks the head of the bankster cartel.   

 

Ok.   

 

 

Thu, 06/27/2013 - 17:42 | 3701070 nope-1004
nope-1004's picture

+1.  Hilsenrath still spewing FED doctrine to placate the masses.  The FED is the source of all evil today.  END THE FED.

 

Thu, 06/27/2013 - 16:13 | 3700685 Charles Nelson ...
Charles Nelson Reilly's picture

meet the new boss, same as the old boss

Thu, 06/27/2013 - 16:21 | 3700731 McMolotov
McMolotov's picture

Fingers crossed for the Krugtard. He could stroke his pussy(cat) in front of congress like some kind of Bond villain. Plus he's got the beard.

Thu, 06/27/2013 - 17:46 | 3701089 Meat Hammer
Meat Hammer's picture

Uh, Dr. Evil, a million dollars isn't exactly a lot of money anymore.

Thu, 06/27/2013 - 16:15 | 3700693 Divided States ...
Divided States of America's picture

Its 100% kosher

Thu, 06/27/2013 - 16:14 | 3700695 ebworthen
ebworthen's picture

Bernanke:  "Get me the hell out of here before I have to make any hard decisions."

Thu, 06/27/2013 - 17:43 | 3701083 nope-1004
nope-1004's picture

 

 

Bernanke:  "Get me the hell out of here before I have to face the consequences of my decisions."

FIFY.

 

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