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Bernanke/Fed Chairs has a 6-yr term which will last past the next 2 elections, he's not loyal to anyone over and above the economy as a whole.

Clinton wasn't scared of AG, he was scared of the bond market, which took rates from 5.75% to 8.3% in 9 months because they didn't like his initial tax&spend policies and attempted restructuring of the US economy.

It wasn't AG who took long rates up 2.5% that fast...it was the market.

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Good 2nd and 3rd points, although I disagree with the first. Call it what you will, loyalty or synchronized philosophies, I doubt that he will be doing anything that the administration thinks is incorrect for short-term benefit.

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i agree, i don't think the fed will do anything the administration thinks is incorrect for short term benefit.

the fed will do whatever it thinks is correct for the long term health of the economy.

Barron

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What if the two aren't the same? What if something can be done that is probably good for the short-term, but for the long-term is 90% chance neutral, 9% chance bad, 1% chance good? And if it makes the awesomely wise people who hired you look good as well?