1,461 Days of Summers (YahooFinance)

Japan’s Nikkei newspaper has published a story claiming that President Obama is set to name Lawrence Summers to become the next the Fed chairman as early as next week. With outgoing Fed Chairman Ben Bernanke due to leave office in January, it has been widely assumed the position would come down to a choice between Summers and Fed Vice Chair Janet Yellen. Lawrence’s nomination is no slam dunk for the four-year term, however, since Democrats are worried that he may be too lax on banking regulation. The bottom line for investors is that by the time Lawrence, or Yellen, takes office in January, the reduction of Fed stimulus will already be underway, and the markets will have responded accordingly.

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