Summers’ Day?

Why are folks so worked up over Ben Bernanke’s successor?

We’ve seen extensive stories in every major news publication over the past week. First, Yellen is a shoe-in. Then she’s favored due to her gender. No, it’s the other way. Then Summers is the front-runner. Then he isn’t. It’s enough to make you cry “Volker!”

The Federal Reserve Board Chair is a very powerful person. Monetary policy matters. Getting it wrong arguably led to the Great Depression in the ‘30s and the Great Inflation of the ‘70s. Managing the transition from super-low to normal interest rates is really, really important.

It’s not about the issues. Summers’ stances on the stimulus, deregulation, and Dodd-Frank aren’t out of the mainstream. But he has a reputation as an imperious egoist, the smartest person in the room who’s not interested in debate. Even his supporters admit this.

The Fed is a collegial, consensual body charged with multiple, conflicting goals. Alan Greenspan extinguished dissent over three decades and it didn’t end well. Bernanke’s successor needs to work well with others.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2017-07-17T12:34:38+00:00 July 30th, 2013|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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