I agree that everyone has their faults, but if we wanted to play fair then, I suppose, we would also have to hear
what exactly would have been so marvellous about a Lawrence Summers in charge… or anyone else, for that matter.
We believe the Fed-chief to be all-important, but, without taking away their commanding prestige, they do not single-handedly control price action: why, if only stirring volatility were so simple, it would already have been done by the former Fed chiefs!
The truth is that volatility is good for FX trading, but too much of it is bad for governments: countries need a stable economy, so it computes that a new Fed chief who has a certified appetite for stability is actually, in the current US economy, viewed favourably, as it gives the government the stability it needs to carry out its economic plan to stimulate recovery.
Remembering the Japanese scenario, it is clear that, in the US as in the Asian counterpart, monetary policy is an aid to financial policy, but cannot heal the economy by itself: no amount of QE or “stirring volatility” can, in the end, heal a country’s recovery if it is not accompanied by sound policies in social, economic, and labour improvement.
To finish, I would like to say that we should be welcoming of Janet Yellen’s swearing in as the first female President of the United States’ Federal Reserve Bank: have we ever asked ourselves why girls growing up end up wanting to give up on their ambitions? It is precisely women like Yellen who can give young women a role model, someone who has earned respect with professionalism and intelligence; just to mention that Yellen was an assistant professor at Harvard University at the age of twenty-five should speak volumes about her calibre - but I digress.
The fact that Yellen deserves our support is not that she is of her gender but, rather, that she has been chosen by Obama to succeed Bernanke, and, therefore, she is now the one to whom we will turn for guidance about the Fed’s future; as such, she must now be given support to get on with her job to do one of the world’s hardest jobs.
And if you really want some light relief, I give you this article:
Daily Kos: Handy comparison chart: Janet Yellen vs. Larry Summers
Enjoy!
Happy trading.