Bernanke Should Expect Problems Early In His Term
As Steven Roach notes, the financial markets have made a habit of testing new Fed chiefs:
Alan Greenspan faced a stock market crash two months after he took over in August 1987. Paul Volcker had to cope with a rout in the bond market three months after he became chairman in August 1979. G. William Miller was challenged immediately by a dollar crisis in the spring of 1978. For Arthur Burns, it was the inflation bogie in the early 1970s.
Should the Senate confirm Bernanke, there is no shortage of problems facing the new chairman.
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