Bear Stearns economists are promoting the idea the bond market should start paying more attention to Federal Reserve Governor Donald Kohn as Governor Ben Bernanke prepares to leave the Fed for the White House. Bernanke, who was recently nominated to head PresidentGeorge W. Bush's council of economic advisors, has been a prominent Fed speaker on the economy and monetary policy and his comments affected the bond market, according to Conrad DeQuadros, senior economist at Bear.
Of course, speeches and testimony by ChairmanAlan Greenspan have always been the largest market movers. But there have been also notable speakers beside the chairman; that mantle was assumed by Bernanke and by former Fed Governor Larry Meyer before him, DeQuadros said. And while Kohn tends not to speak as frequently as Fed Governors Edward Gramlich or Roger Ferguson, he tends to focus more heavily on monetary policy and the economy as Bernanke did, DeQuadros noted.
Other economists disagree. "As Bernanke fades from the scene the views of the others are relatively more important, but all the governors are worth listening to," said Dean Maki, chief U.S. economist at Barclays Capital.
