Anyone, but Yellen — 5 reasons to appoint a new Chairman of the Federal Reserve




Someone new would be to put the focus on the monetary policy

Janet Yellen has done an excellent job as Chairman of the Fed. She had a few stumbles on the policy, but it was solid as a rock, on the communication.

If it were to continue, it would be more of the same thing and that would mean smooth sailing for the markets.

As a trader, I really hope that it gets mixed.

Here are some of the reasons why

#1 — It’s boring

Objectively, it is a good thing for the markets and the economy. In real life, I can not stand another four years of listening to dumb everything down and avoid the real issues.

#2 — She plays it safe

Yellen said things such as the automation of the Fed, but if you were to put a robot in charge, you model after Yellen. She plays it safe on all the issues, all the problems, all the speeches. It is time for a little out-of-the-box thinking, Yellen is so deeply inside the box that she can’t see the edges.

#3 — the Volatility, please

The world is in need of volatility and uncertainty. Not only because it makes trading more interesting, it is good for the market discipline and keeps everyone on their toes.

#4 — I can’t stand his voice

Does it make me a bad person, maybe, but I’ve listened to four years of speech and I don’t know if I can take another four years.

#5 — the Monetary policy is in need of new ideas

Ok, the first four reasons are all shallow and selfish, but in the bigger picture, I believe that the academics running the world, the central banks are dominated by group-think and there was a serious lack of imagination. It is time for new ideas. Taylor and Warsh, in particular, are willing to experiment and that is why the one and the other make a better president.



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