Who Will Succeed Bernanke? Who Should?

Janet Yellen’s chances to move up from No. 2 to No. 1 at the Federal Reserve are looking pretty good to the economists that participated in the latest Wall Street Journal survey.

The survey yielded a 46% probability that the president would nominate Ms. Yellen to replace Ben Bernanke as chairman when his term is up at the end of the year, based on the average of estimates provided by the participating economists.

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Just as I was about to enjoy the last day of what has been more work than vacation time, gold gets hammered on the back of news the punch bowl may be running dry. Throw in the fact that it always seems to get assaulted around the monthly employment report and one can certainly feel like its Deja-vu.

Read more: http://tinyurl.com/apxp9xe



The Fed continues with its “QE forever” easing program. But something new has been added. The Fed now wants the unemployment rate to be at 6.5%, and they’ll keep rates around zero until that happens.

Bill Gross is founder and co-CEO of Giant PIMCO. Gross is a member of BARRON’S Roundtable and is highly respected on Wall Street. Gross is a bond-man, and I don’t ever remember him saying anything about gold.
Bill Gross says only gold and real assets will thrive in fiscal ‘ring of fire.’

Read more: http://tinyurl.com/cv2shlk

Fed makes new rate pledge, ups stimulus

In an unprecedented step, the Federal Reserve said on Wednesday it would hold interest rates near zero until the U.S. unemployment rate falls to 6.5 percent as it launched a new round of bond purchases to stimulate the economy.

The central bank said its commitment to hold rates steady until its new threshold was reached would hold as long as inflation was projected to be no more than 2.5 percent one or two years ahead and inflation expectations were contained.

Read more: http://tinyurl.com/bn4vp8t