Flash: Who will be the next Fed chairperson? – Deutsche Bank

FXstreet.com (New York) - In an interview with the NY Times published over the weekend, President Obama hinted that he wants someone who will “keep inflation in check” and “keep our Dollar sound” which were interpreted by some as suggesting a bias towards Summers, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

Key quotes

“We think Summers is by no means a hawk but rather he is optimistic on growth. Indeed they note that any Summers’ critique of current policy settings should be understood in the context of being an eager candidate for the job.”

“If Secretary Summers were actively seeking the post, then agreeing with current policy settings without critique would hardly constitute an effective strategy of differentiation from Governor Yellen or other candidates.”