that said, there is some candidates out there that are really ready to take the reins there is janet yellin, the vice chair. she is who gets most often talked about as a leading candidate. some others are less widely talked about, roger ferguson, larry summers has the resume for it but is a polarizing figure. i think president obama will have plenty of options as he starts to weigh this decision in the months ahead. >> it does sound like janet yellin is the front-runner from the people we've been hearing from. tell me, do you think when it does come time for the federal reserve to pull the stimulus out of the economy, and let's say she is the fed chief, what kind of job do you think she'll do? because it's a very tricky -- it's a very tricky exit strategy to have to executes here. >> yeah, you know, the politics, the technical stuff is one side. you raise interest rates? can you sell off this bond portfolio they've accumulated? $3 trillion a huge task. but have i more confidence in their ability to handle the technical aspects than i do making the right decision. when do you begin this exit

>> well, i would say that janet yellin has the right of first refusal. she has extraordinary experience. obviously being on the board, then being vice chair, being president of the san francisco fed, being chairman of economic advisors, talking a lot about exit. there is an advantage of bringing in transitioning to someone who has that kind of experience because what ear going to go through during her -- during the next chairman's tenure is an unwinding of a lot of this. so i think she has the right of first refusal. one of the things that is difficult is coming up with two, three, etc. >> i was just coming out of the jackson hole point. i agree with larry's point about chairman bernanke not weather channeling to personalize. i think we're missing the point here on jackson hole. he didn't want to go last year. that's why they moved it by week. they could trap him and say his schedule was open. he doesn't want there always to be so much focus that there has to be a policy announcement for jackson hole. they may continue to the next chairman. >> when we we

janet yellin, she's more of a double down. >> the average american can refinance their house, they'reo see the expansion orvel velocity. the average american has not been able to refinance their house. >> i want to move off of gold for a second. the euro because you have an opinion there and presumably this note of yours was written before draghi's action. i think this will continue. you change that now because of what happened in europe? >> no, i was out a year and a half ago saying the same thing. about a year ago, hair was on fire, euro's falling apart. it's nonsense. it's a political project, not an economic project and the political will is there number one. you've got three things going on. german technology, good business climate in germany and finally, chinese capital. capital flows dominate trade flows. china has wanted to invest in europe in a big way, but they want to see europe get their act together. of course, the chinese want to get out of dollars. at the margin, dollars. technology from germany, china's capital. sort of a singapore -- you're going to see a lot -- it's

. >> haven't we already figured out it's going to be janet yellin?e's of a like mind with ben bernanke on this. >> well, actually, the real question is -- i'm not sure. you know, it's funny, if you talk to some constitutional investors, i've had a mixed bag on that, right? not to comment or epine one way or the other about yellin, but that she tends to be a little bit more dovish. i think people see bernanke, although what his actions seem to be, the hawks would say he's dovish, i think he's more of a full-field player. i think the circumstances called for him to be there, but i think in another circumstance, he would be much more hawkish, whereas i think most people would think in, you know, yellin would bemore of a true dove than bernanke. >> but isn't that precisely what the market would need at that time, someone who would be less likely to be as abrupt with the tapering off, if, in fact, she's that dovish, then she'd be less likely to be as abrupt in the tapering off, don't you think? >> perhaps, perhaps. but i guess then the question just becom

janet yellin, who may be the next fed chairman, when she talks about reasons she would like to pull backthing she mentions is financial speculation. and so, as the fed starts to pull back, and i think that will start in the second half of the year, that will be a major reason why. but kelly, i want to underline something here. the fed has two exits, not one exit, ahead of it. the first exit is to stop the quantitative easing. the second is when the exit out of zero interest rates. the second exit is the much bigger deal for the markets. and i don't think that's going to happen for another two years. >> greg, you know, if you look at what david tepper said the other day, you know, in effect, he becomes the fed's best friend, right? you have a major market participant, a guy who runs a tremendously large hedge fund, telling the market, it's going to be okay. doing a job that perhaps the fed can't do as effectively as a guy who's running that much money in the market. so can't the fed get out of this okay at the end of the day without causing some major unrest within the markets? >> i don't

one of the reasons janet yellin gets spoken of so forcefully in terms of this position is she was justroved. in terms of the confirmation process it's not really that difficult. i would like to sea larry summers get nominated if only because the nerd in me would find this fascinating for television. >> the congress, as well. >> one of the points brought up to rebutt the ft nerd. he said women wouldn't be good at mathematics. and he would be in the chair. >> he didn't quite say that. >> we're talking about a statement that was taken out of context a ga zillion times. >> i'll tell you what i'm worried about is the two of them are agreeing and they're relatively constructive and that's under any scenario. >> it's fine now and it will be fine if they start to tighten. >> this will come back where the yields are. the yields are so darn low that equities biaset class and the fundamentals are getting better. >> very quickly. something i was talking about in terms of capitulation because there are a number of wall street firms that raised their price target for the second time. the fed and glo