Fed: Markets not holding their breath for the next pick - MUFG

Dr. Brendan Brown, Analyst at MUFG suggests that markets are not holding their breath for the next Fed pick – whether a 1-year extension for Janet Yellen, a win for Gary Cohn, or the return of Kevin Warsh. 

Key Quotes

“No fundamental change is coming. More scary Professor Summers argues that the next Fed should take stronger non-conventional measures in the next recession, seemingly backing a similar call from Harvard Professor Ken Rogoff.  These measures would include a stepped up war on cash so as to allow greater negativity for interest rates. Libertarians dread such proposals which incidentally would smother any prospect of monetary base returning to the pivot of the monetary system – a precondition for re-establishing a free market in rates.”