The strangest part of the increasingly bitter shadow campaign for chairman of the Federal Reserve is that the contest is not really about monetary policy. It’s about financial regulation.
The two leading candidates for the job are Janet Yellen, the current vice chairman of the Fed, and Larry Summers, the former Treasury secretary and an economics adviser to President Barack Obama. When it comes to monetary policy, they don’t differ drastically. Both support the Fed policy to maintain low interest rates and continue asset purchases -- no premature “tapering” -- until unemployment falls significantly.
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