It seems this morning's trial balloon has set the gamblers off as PaddyPower [4] shows that the probability of Larry Summers becoming the next Fed Chair has soared to over 85%. Just six short weeks ago Summers was a long-shot 20% probability and Yellen the shoe-in at 75%. In the meantime, despite over 300 economists putting pen to paper to demand more of the same monetary policy that has not worked; Summers is now more probable that Yellen was at the start. Of course, given today's reaction, traders may start to position for the seemingly inevitable though we suspect that - as usual - we will be told that stocks near their highs are already discounting this and any other potential change.
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Source: PaddyPower [4]