Tuesday, June 18, 2013

As the Bond Market Nears a Crash, A Major Signal Bernanke On His Way Out

There isn't a bond trader alive who isn't aware that interest rates soar when the Fed tapers its quantitative easing. It will be a massive rush to the exits. Bond prices will crash. It appears that Federal Reserve Chairman Ben Bernanke wants out before that crash begins.

President Barack Obama said Bernanke has stayed in his post “longer than he wanted,” one of the clearest signals the central bank chief will leave when his current term expires next year, reports Bloomberg.

“Ben Bernanke’s done an outstanding job,” Obama said in an interview with Charlie Rose that aired yesterday, when asked about nominating him for another term subject to Senate approval. “He’s already stayed a lot longer than he wanted or he was supposed to.”

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