Anyone but Yellen -- 5 reasons to appoint a new Federal Reserve Chairman

Author: Adam Button | Category: Central Banks

Someone new would put the focus back on monetary policy

Janet Yellen did a fine job as Fed Chair. She had some stumbles on policy but was rock solid on communication.

If she were to continue, it would be more of the same and that would mean smooth sailing for markets.

As a trader, I really hope she gets shuffled out.

Here are some of the reasons why

#1 - She's boring

Objectively, that's a good thing for markets and the economy. In real life, I can't stand another four years of listening to her dumb everything down and avoid the real questions.

#2 - She plays it safe

Yellen has lamented things like automating the Fed but if you were to put a robot in charge, you would model it after Yellen. She plays it safe on every question, every problem, every speech. It's time for some out-of-the-box thinking, Yellen is so deep inside the box that she can't see the edges.

#3 - Volatility, please

The world need volatility and uncertainty. Not just because it makes trading more interesting, it's good for market discipline and keeps everyone on their toes.

#4 - I can't stand her voice

Does that make me a bad person, maybe, but I've listened to four years of speeches and I don't know if I can take another four years.

#5 - Monetary policy needs new ideas

Ok, the first four reasons are all shallow and selfish but in the bigger picture, I believe that the academics running global central banks are dominated by group-think and there is a severe failure of imagination. It's time for new ideas. Taylor and Warsh, in particular are willing to experiment and that's why either would make for a better chairman.