CNBC: "If it's Yellen, Wall Street gets the Fed chief it wanted, not expected"

[pampango]

Wall Street looks set to get who it wants as Federal Reserve chairman, but definitely not who it expected.

The CNBC September Fed Survey, conducted Thursday and Friday, found Wall Street participants by a 2-to-1 margin believed President Barack Obama would nominate former Treasury Secretary Larry Summers to be the next Fed Chairman. But by about a 5-to-1 margin, they wanted current Vice Chairwoman Janet Yellen to accede to the top post over Summers.

Among the reasons for the preference of Yellen over Summers: The survey of 47 top economists, Wall Street strategists and investment managers found that most perceived Summers to be more hawkish than Yellen—that is, they believed he would be less likely to continue the current easy monetary policy of current Chairman Ben Bernanke.

The survey found that participants believed Yellen was substantially more concerned about unemployment than Summers, and that Summers had greater concern about inflation. ... Market participants gave Bernanke the highest overall score. Yellen came in a close second. But even Kohn beat Summers, who finished last among the four in the eyes of Wall Street.

http://t.nbcnews.com/business/if-its-yellen-wall-street-gets-fed-chief-it-wanted-8C11166978

Krugman has come out in support of Yellen as well. It is interesting that stock markets all over the world were up today.

It is always a weird day when "Wall Street participants" agree with Krugman and a largest portion of DU, including me, who prefer Yellen over Summers.

[Chan790]

1. I don't know enough about Kohn to know if that's who we should be really backing. n/t

[Oilwellian]

17. He was a great supporter of the Greenspan Doctrine

Deregulation.

http://www.federalreserve.gov/boarddocs/speeches/2005/20050827/default.htm

[Chan790]

21. That would be a no then.

everything I could find on the guy just kept saying "long time civil employee for the Federal Reserve" with no disclosure of policy positions...that may be a sign someone is scrubbing his resume to stifle opposition against him should he be nominated.

[frazzled]

2. Should we be suspicious of who Wall Street wants?

(Or doesn't want?) Just wondering, because we usually are.

[Yavin4]

5. Wall Street wants cheap money

In this instance, our desires converge. Wall Street wants cheap money, and we need all the economic stimulus that we can get. The Fed has been the only entity pumping stimulus into the economy because the Congress sure as hell ain't doing it.

[tazkcmo]

8. Kind of scary, huh?

We SHOULD be suspicious of Wall Street and for good reasons. Maybe they're saying the like her so we turn against her? Or what if they REALLY do like her? lol It certainly does make a person wonder.

[Mass]

3. May be, but this survey has such a small sample that it has only an anecdotal value.

[Yavin4]

4. The only economic stimulus is coming from the Fed

In order for the economy to grow, there needs to be both fiscal and monetary stimuli, but one-half of the congress is controlled by the Republicans.

The problem with monetary stimulus is that it greatly favors asset holders over everyone else. Lowering the cost of borrowing greatly increases the value of assets. It's probably the single biggest reason for the 1%/99% split.

[JoePhilly]

6. Obama TRICKED us into hating Summers!!!!!!

AAAAARRRRGHHHHH!!!!

[tazkcmo]

11. I hope you have a stick to stir with.

Because what you're stirring can get you awfully sick if you touch it. You are the only person to bring the President into this discussion.

[JoePhilly]

12. You mean some one other than the President will be making this nomination?

[tazkcmo]

16. No

I mean this discussion is about what Wall Street wants.

[JoePhilly]

18. I thought Wall Street wanted Summers?

And the President was going to be more than happy to give them Summers.

That's been DU's conventional wisdom all summer.

[tazkcmo]

19. ok n/t

[Rex]

7. Like they care which one of the 4 gets nominated!

WS wins no matter what!

[tazkcmo]

9. I'm sure you're right. n/t

[Agnosticsherbet]

13. I think you have made a valid statement....

It is unlikely that any President in contemporary history would piss on wall street by appointing someone that Wall street would hate.

I think it is interesting that everyone sang her praises to the rafters as someone who would stand up to Wall Street and the banks, only to see that may not necessarily true.

How much do we really know about these people?

If one is in a position to be considered for the post, is that really someone who will stand up to Wall street.

If Warren approves of her nomination, what does that mean about Warran? How could she support the person that Wall Street wanted?

I can't wait to find out.

[treestar]

10. this can't be

Elizabeth Warren said Yellen would be good. Wall Street wants Yellen. Therefore, EW has sold out already.

[JoePhilly]

14. Ouch!

[Agnosticsherbet]

15. "It is a strange strange world we live in, Master Jack"

[cthulu2016]

20. Higher stock prices are not the enemy of the people.

There is no reason for ordinary Americans to want tighter money in order to strangle what's left of the economy.

Wall street also doesn't want that.

No contradiction there.

It's not like when the stock market goes down the lost value goes to poor people. It goes to money heaven.