This is a Test…

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The saying goes that every new Fed Chair is tested (but good) upon taking the reins. In order for that test to come about, it seems that more often than not the previous Fed Chief will have been withdrawing at least some of the particular policy (Greenspan: Easy Fed Funds for Easy Al, Bernanke: Easy Fed Funds/ZIRP & QE bond buying) that had made them look like heroes to so many during their tenure. Here, have a look…

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Greenspan was withdrawing the post-dot.com bubble policy that had created a massive credit bubble when poor Ben Bernanke took over. Ben’s Waterloo was the 2008 crash. Enter ZIRP and QE to da moon. Now, a withdrawal of some of that for poor Janet. One wonders what her inflation is going to look like after whatever her baptismal event will be.

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