Summers out, Fed credibility assured

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So he did the right thing.  Good for him.  Now the Fed has credibility up the wazoo.  Watch them decide not to use.  Which is what they’ve been not doing since September 16, 2008.

More on that date tomorrow.

HT:  David Levey and Steve

PS.  And can we PLEASE stop talking about liquidity traps.  This is getting ridiculous.


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13 Responses to “Summers out, Fed credibility assured”

  1. Gravatar of Geoff Geoff
    15. September 2013 at 14:36

    It doesn’t matter who is Fed chair. It’s a guaranteed failure.

  2. Gravatar of Steve Steve
    15. September 2013 at 14:39

    S&P 500 futures gap up 17 points…

  3. Gravatar of TravisV TravisV
    15. September 2013 at 15:16

    Bob Hetzel should be Fed Chair!!!!!!

    http://marketmonetarist.com/2013/07/31/forget-about-yellen-or-summers-it-should-be-chuck-norris-or-bob-hetzel

  4. Gravatar of dwb dwb
    15. September 2013 at 15:52

    ahh, you are assuming he’ll nominate Yellen. Don’t underestimate how insular this administration is. There are lots of even worse candidates he could pick so I’ll pop the champagne when we see the actual nominee.

  5. Gravatar of ssumner ssumner
    15. September 2013 at 16:27

    Thanks Steve, I have a new post.

    Travis, Yes, Hetzel.

    dwb, I’m not assuming anything. I’m following the markets, as I always do.

  6. Gravatar of Saturos Saturos
    15. September 2013 at 21:06

    Mr Summers’s critics showed little interest in his views on inflation, unemployment or how the Fed should behave in a world where its main tool, the short-term interest rate, is impotent. If they had they would have found him as dovish as Mr Bernanke or Ms Yellen, all of whom are far more preoccupied with unemployment than inflation.

    http://www.economist.com/blogs/freeexchange/2013/09/federal-reserve

  7. Gravatar of Saturos Saturos
    15. September 2013 at 21:09

    As an aside, whatever happened to the good old “apostrophe ends the word when its last letter is ‘s'” rule? If even the Economist doesn’t follow it anymore?

  8. Gravatar of Saturos Saturos
    15. September 2013 at 22:42

    The letter: http://blogs.wsj.com/economics/2013/09/15/full-text-of-summers-letter-withdrawing-from-fed-consideration/

  9. Gravatar of paul paul
    15. September 2013 at 23:49

    Saturos:

    The Economist’s use of the apostrophe is correct.

    http://owl.english.purdue.edu/owl/resource/621/01/

  10. Gravatar of ssumner ssumner
    16. September 2013 at 04:29

    Saturos, Obviously I strongly disagree with that quotation, as does the market.

  11. Gravatar of Saturos Saturos
    17. September 2013 at 01:04

    Evan Soltas comments: http://www.bloomberg.com/news/2013-09-16/with-summers-the-left-takes-a-scalp.html

  12. Gravatar of Saturos Saturos
    17. September 2013 at 01:06

    paul, according to the Oxford Dictionary, you either add or don’t add an ‘s’ depending on whether you would pronounce it out loud. http://oxforddictionaries.com/words/apostrophe But in real life, I have no idea when to pronounce it out loud, and am forever in panic when called to decide – and those examples aren’t very edifying!

  13. Gravatar of ssumner ssumner
    17. September 2013 at 05:26

    Saturos, I’m surprised at how much Evan seems to like Summers.

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