The New Guy

So there's going to be a new guy in town. The new Fed chief is rumored to be Bernake. What difference does that make?

Econo-Girl thinks that temperment plays a small part in the doings of the Fed. Even if you thought the last guy was a little off the mark, radical change would result in market panic. So if there are shifts, they will be slow in coming and, well, incremental.

You could be the Psychic of the Markets and All Things Financial, and if you made sudden and striking moves, the results would be counterproductive. Remember, we are dealing with a bunch of neurotic cokeheads here. They don't think rationally.

Expectations play a larger role and that is essentially what the Fed has to manage as well as the money supply.