It’s being reported that Federal Reserve Chairman Ben Bernanke and Treasury Secretary are on their way out. Both men are looking to exit their positions soon.
Andrew Ross Sorkin writes,
For the last couple of months, there has been a parlor game on Wall Street and in Washington about who will become the next Treasury secretary. After all, Timothy F. Geithner has made it clear he plans to be out of that office at the end of the year whether President Obama is re-elected or not.
But there is another wrinkle in the parlor game calculus: Ben Bernanke, the Federal Reserve chairman, is likely to need a successor, too. If Mitt Romney wins the presidency, he has already pledged he will replace Mr. Bernanke, whose term as chairman ends in January 2014, in just over 15 months. However, Mr. Bernanke has told close friends that even if Mr. Obama wins, he probably will not stand for re-election.
That would be a one-two punch, with two of the most important jobs in the nation up for grabs. And over the last couple of years, especially at the depth of the financial crisis, the relationship between the two people in those roles has been increasingly important. They are the equivalent of roles in a buddy movie.
I am actually quite happy to hear this about both men. Although our government actually dealing with the Federal Reserve would be a wonderful thing and bring us back to Constitutional sound money based on a gold standard. No matter who takes over the Federal Reserve, unless monetary policy is changed, it will not make any significant changes no matter who is in the position.