Bernanke to stay course at Fed; Investors predict policy likely won't change, but chairman-elect will face a rocky honeymoon period with the markets.(News)

Pensions & Investments, October, 2005 by Crawford, Gregory

Byline: Gregory Crawford Institutional investors don't expect changes in Federal Reserve policy under Chairman-elect Ben Bernanke, although there might be a few months of stock and bond volatility as the markets find a comfort level with the new Fed chief. "The market has to get comfortable with a new guy on the block and we could see additional volatility,'' said Christopher Probyn, chief economist of State Street Global Advisors, Boston.

"The second thing we have to consider is that any new Fed chairman, whether it be Ben Bernanke or anyone else, is eager to establish anti-inflation credentials given the 20-plus years of work by Alan Greenspan and Paul Volcker.'' Mr. Bernanke was nominated by President Bush on Oct. 24 to succeed Mr. Greenspan when he...

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