A Larry Summers' chairmanship of the Federal Reserve might sprout something quite different from a warm, tranquil summer feeling markets would like.
One of the top leading candidates, the former US Treasury Secretary under President Clinton, Summers roiled the bond market recently with his comment about QE and its overall effectiveness on the economy.
According to the Financial Times, Summers called QE "less efficacious for the real economy than most people suppose." That's hardly what an already spooked bond market wanted to hear.
The other reported top candidate, now Vice Chairman Janet Yellen, is viewed as being more dovish than Summers and more favorable to those who want QE to continue. So a controversy has arisen.
But since the appointment isn't expected until later this year, the market may have to twist in the wind a bit longer.
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