Thursday, April 11, 2013

Janet Yellen appointment could scare bond market

She is far looser or more dovish than Bernanke. My issue with somebody like Yellen is that she’s potentially perceived as such a loose cannon — so loose that it would scare the bond market, whereas Bernanke has built up a certain level of credibility with the market.

A client said to me a few weeks ago that if Karl Marx was in charge of the world, he’d have Janet Yellen as his central bank governor.