The end of an era is coming upon our nation.
Yes, The Fed Man, Alan Greenspan is finally going to retire.
Despite offers of cloning to keep at least a version of him at the helm, a successor has been nominated.
Bernanke, a Republican who holds a doctorate in economics from the Massachusetts Institute of Technology, has a fiscal philosophy similar to that of Greenspan, who was named Fed chairman by President Ronald Reagan in 1987 and renominated for four-year terms by three other presidents.
However, Bernanke and Greenspan differ on whether the Fed should set targets for inflation. Bernanke believes the Fed should set such targets, while Greenspan does not.
Note the distinction being made upon philosophy of the setting of targets for inflation. This issue has generated some lively (ok, as lively as economists can get) discussions among the economic community.
At least this nomination doesn’t look like it’ll ignite the same furor as generated by that of Meirs, but ironically enough it could have a far more significant impact upon our nation.
Well, there’s going to be a new FR sheriff in town come next February 1st.
Stay tuned and watch the markets!