(NB: I am posting early as I have a school meeting to attend this evening! )

There has been a boat load of commentary on the change up at the FED,
who is going to be the next man behind the curtain?
What affect will the change have on monetary policy?
How will it change the market dynamic?
on so on......

If you want my two cents......here it goes!

IT DOES NOT MATTER ONE SINGLE IOTA, WHO IS SITTING AT THE TOP OF THE TABLE AT THE FEDERAL RESERVE.

The FED has one job,
and one job only.
It is to make sure that the United states federal govt can sell its bonds.
That is it, and nothing else.

Q: Why is the FED buying bonds in the open market?
A: to make sure more government bonds can be sold!

Q: Why did the FED buy morgatge backed bonds?
A: to make sure more government bonds can be sold!

Q: why does the FED exist?
A: to make sure more government bonds can be sold!

That federal govt is a hungry beast that cannot possibly be satisfied!
So the fed has an impossible job really,
Trying to cure a shopaholic with free cash has never worked as far as I know?

So the person in charge is simply a figurehead to answer questions at a press conference, nothing more.
The same job must be done every day no matter who is in charge.
GOTTA SELL THOSE BONDS BABY!!!!!

TOMORROWS RISK EVENTS:


USD: Advance GDP q/q, Advance GDP Price Index q/q, Revised UoM Consumer Sentiment.
EUR: N/A.
GBP: N/A.
JPY: N/A.