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With Summers Out, Yellen Becomes Fed Chair Frontrunner

  +Follow September 16, 2013 10:50AM
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While investors had already braced for some tapering of the $85 billion a month quantitative easing program, fears that QE would be reduced drastically were abated on Sept 16 when Larry Summers withdrew from his bid to become the new Federal Reserve Chairman. On the news of Summers’ withdraw, the Dow, the Treasury, and financials all rallied.

While Summers’ exact plans were he to become the Fed Chair were uncertain, investor perception was that he would aggressively curtail government stimulus at a much faster rate than current chair Ben Bernanke, who is set to step down in Jan. 2014.

With Summers out of the picture, current Vice Chair of the Board of Governors of the Federal Reserve Janet Yellen is now the clear frontrunner for the position. Yellen was a vocal proponent of government stimulus, and is widely expected to continue Bernanke’s programs more or less as he would have.

As opposed to the intellectual, liberal Yellen, Summers is much more hawkish and has a reputation as a wildcard prone to “outside-the-box thinking” which tends to make investors skittish.

The Fed is expected to meet on Sept 18, where it is believed they will announce they are scaling back quantitative easing. However, the market has already prepared for a tapering in the neighborhood of $10 to $15 billion a month, and that “the tapering is (already) widely discounted,” wrote strategists at KBC Bank in Brussels.

The markets, both domestically and internationally, rallied on the news of Summers’ withdraw and the presumptive maintaining of the status quo. US Treasuries were up significantly, and the Dow neared a new all time, rising over 150 points in early trading.

Investment banks Morgan Stanley (MS) and Goldman Sachs Group (GS) were both up on the day, as the majority of the financial sector rose with the good tidings. Morgan Stanley gained 2.4 percent to hit $28.81 a share. Goldman was up 2.07 percent to hit $167.40 a share.

 

(image of Larry Summers courtesy of WIkimedia Commons)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for ms
Trading Alpha
1 Feb 15 07:58:21
$SPY, $PWR, $NWSA, $MS, $MON, $MU, $JCP, $HPQ, $HLF, $C, $CSCO, $CCL, $ABC, $AIG, $AA, $A Entries and Levels: https://t.co/ntOy4z0gPo
JR Navarro
1 Feb 15 04:17:58
$MS - MORGAN STANLEY: These Are The 9 Best Stocks In America Right Now http://t.co/lJWmlNf1Co
Gilles Meriott
31 Jan 15 20:41:18
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
Woll Street
31 Jan 15 19:01:59
$MS https://t.co/qdl3NrLCrH bear flag at 200MA looks ready to drop below it so keep an eye...
Woll Street
31 Jan 15 18:57:17
$CP https://t.co/wjlRPgkJ0k descending triangle and broke this line could breakdown. For some reason $MS trying to save it.
Ray Fowler
31 Jan 15 16:12:19
Why are tax payers forced to pay $Ms for Muslims VIDEO: Muslims Using Food Stamps Demand Food Meets Islamic Reqrmnts. http://t.co/TYUxRyEihu
Stockaholics
31 Jan 15 15:24:28
Our Alerts on $IJJP $QLTS $TUNG & $ETBI Gained 160% This Week! Get Our Next Pick: http://t.co/LayPQuOeI4 $MS $HART $LRDR
FinSentS SP500
31 Jan 15 15:19:32
$MS:US JPMorgan to pay $99.5 million to resolve currency rigging lawsuit #MORGAN STANLEY http://t.co/1mFx26iKmh #SP500
PolgarStocks
31 Jan 15 15:16:11
$MS Company Info Updated Saturday, January 31, 2015 6:07:31 PM $SLB $XLB $KO $DIA http://t.co/E9iMTIe7Op
IH News Desk
31 Jan 15 15:15:08
$DXJ Company Info Updated Saturday, January 31, 2015 5:11:40 PM $SSO $MS $HI $CSII http://t.co/aMsbeY9P1C
Ron Renfrow
31 Jan 15 15:13:09
$MS held the 200sma on the daily for the last three days looking for a bounce at any market strength.
Langan Stocks
31 Jan 15 13:53:34
$SCO Recent News Updated Saturday, January 31, 2015 4:03:30 PM $MS $SH $GPRO $ABX http://t.co/2cdF3m5hju
Eduard Gertsev
31 Jan 15 13:51:36
$3.1 trillion in deals in '14. $GS in on nearly a trillion of it. $MS, $JPM, $C up there also. http://t.co/vGezFiJ2c3
Langan Stocks
31 Jan 15 12:53:14
$MS Short Sales Updated Saturday, January 31, 2015 3:03:29 PM $HYG $IWM $CHL $NTEK http://t.co/OcsVZ9g6kr
Stock Rocket
31 Jan 15 11:38:33
Our Alerts on $IJJP $QLTS $TUNG & $ETBI Gained 160% This Week! Get Our Next Pick: http://t.co/vJR8lXzozx $MS $HART $LRDR
Investors Hangout
31 Jan 15 11:08:03
Stocks Trending Now: http://t.co/48sklYB0IN $SFY $QNIIF $CSCGY $IRC $GZPHY $MS $BTZ $CXLIF $URHG $ORYN $WEBK $HRTT ~
IH News Desk
31 Jan 15 10:11:08
$GILD Investor Opinions Updated Saturday, January 31, 2015 12:11:43 PM $TVIX $DRYS $HI $MS http://t.co/CDHtbnOLMu
PolgarStocks
31 Jan 15 09:11:07
$MS Opinions Updated Saturday, January 31, 2015 11:07:44 AM $JNK $NEM $EWZ $TWTR http://t.co/Js1JThQJHZ
Rosner Stocks
31 Jan 15 08:11:14
$NUGT Last Price Updated Saturday, January 31, 2015 10:59:28 AM $MYEC $LUV $GPRO $MS http://t.co/BfKcCPW3cT
Motown Jones
31 Jan 15 07:04:51
@DineshDSouza Deserving of pardon. Rev Al owes $Ms and attends WH dinners. Your political ideals made you a target. More apt USSR of old.
Stockaholics
31 Jan 15 06:47:20
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/LayPQuOeI4 $MS $HART $LRDR
Rosner Stocks
31 Jan 15 05:07:33
$MS Stock Price Updated Saturday, January 31, 2015 07:59:27 AM $RGLD $SSO $VTI $IEV http://t.co/qflcWi9NcI
Olaniyi Broun
31 Jan 15 04:41:10
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
Langan Stocks
31 Jan 15 03:46:08
$EWZ News Updated Saturday, January 31, 2015 06:03:34 AM $ABBV $BIDU $MS $ECIG http://t.co/KfMYaSzsHQ
Nedavya Cometson
31 Jan 15 03:16:06
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
stockexplorer2
31 Jan 15 02:38:04
RT @TradingAlpha11: $MS Short Entry: 33.65 http://t.co/S7Qb8Tf9ar
PolgarStocks
31 Jan 15 02:02:45
$MS Percent Change Updated Saturday, January 31, 2015 04:07:41 AM $CELG $SCO $SMN $XOM http://t.co/aXXlo3XeYB
Langan Stocks
31 Jan 15 01:44:39
$MS News Updated Saturday, January 31, 2015 04:03:34 AM $INTC $RXMD $FXY $IMSC http://t.co/NmMVPo5cnq
Langan Stocks
31 Jan 15 01:44:36
$HAL Stock Forum Updated Saturday, January 31, 2015 04:03:34 AM $CVX $AMZN $SMN $MS http://t.co/wAycPDVEFI
Langan Stocks
31 Jan 15 01:44:36
$TQQQ Financials Updated Saturday, January 31, 2015 04:03:34 AM $MS $TNA $CAT $NTEK http://t.co/GUU9I1XaxB
Trading Alpha
31 Jan 15 00:51:12
$MS Short Entry: 33.65 http://t.co/S7Qb8Tf9ar
Langan Stocks
30 Jan 15 23:43:06
$NTEK Stock Forum Updated Saturday, January 31, 2015 02:03:34 AM $MS $UUP $SSO $XRT http://t.co/LmFcIe22Ue
PolgarStocks
30 Jan 15 22:58:40
$ZA Stock Price Updated Saturday, January 31, 2015 01:07:40 AM $BP $BIB $GE $MS http://t.co/mOMWrNpLrg
Stephen s
30 Jan 15 21:47:31
RT @rosnerstocks: $MYEC Stock Price Updated Friday, January 30, 2015 10:59:25 PM $SMH $TQQQ $EPI $MS http://t.co/n9ycOVCjbo
Evdokija Flaonier
30 Jan 15 21:06:05
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
IH News Desk
30 Jan 15 20:58:39
$XLP Company Info Updated Friday, January 30, 2015 11:11:48 PM $KR $INVN $MS $IBB http://t.co/PCf8ezq2QB
Rosner Stocks
30 Jan 15 20:58:37
$MYEC Stock Price Updated Friday, January 30, 2015 10:59:25 PM $SMH $TQQQ $EPI $MS http://t.co/n9ycOVCjbo
PolgarStocks
30 Jan 15 19:55:41
$CTIC Stock Forum Updated Friday, January 30, 2015 10:07:42 PM $MS $SQQQ $AUY $ELTP http://t.co/hXURI2me6Q
Stock Rocket
30 Jan 15 19:25:47
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/vJR8lXzozx $MS $HART $LRDR
Azusa Fortnon
30 Jan 15 19:11:30
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
Joe Ip
30 Jan 15 19:07:02
@jscfan $MS
Ivanka Laxton
30 Jan 15 18:41:25
RT @gopiryfysyku: #Morgan Stanley : Insider e-mails: Wall Street pushed bad Detroit mortgage loa... http://t.co/825dhYMjxV $MS
Langan Stocks
30 Jan 15 18:39:12
$ERFB Short Sales Updated Friday, January 30, 2015 9:03:33 PM $MS $QID $VSLR $SMH http://t.co/ulhfiwJdlH
LTentarelli
30 Jan 15 16:57:58
L/ $AMBA $BIDU $CELG $FB $FEYE $HPQ $INTC $MO $MS $PANW $UA $VIPS S/ $AA $TSLA
#JeSuisUnHumanitaire
30 Jan 15 16:35:34
American charities funnel $ms to support illegal settlements in Israel: http://t.co/ulDqSp8G1T
Stock Rocket
30 Jan 15 15:08:22
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/vJR8lXzozx $MS $HART $LRDR
Solo traders
30 Jan 15 14:36:40
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/vMwdpzsFDx
Solo traders
30 Jan 15 14:36:39
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/Du18DtitxM
Solo traders
30 Jan 15 14:36:37
$MS - Prospectus Filed Pursuant to Rule 424(b)(2) (424b2) http://t.co/U4rF7qXYKV
Solo traders
30 Jan 15 14:36:36
$MS - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/D3E1aeopQC
				
				
  +Follow September 16, 2013 10:50AM
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