Republican presidents have traditionally favoured low interest rates, and George Bush is said to have lost re-election to Bill Clinton in 1992, because Federal Reserve head Alan Greenspan got too late a start cutting interest rates to lesson the impact of the Gulf War recession.
Romney, though, is said to favour a tighter money supply, and has taken issue with recent Fed efforts to stimulate the economy. While his views may stop short of the policies of Paul Volker, Romney does show concern about long-term inflation trends.
So, who might Romney name to head the Fed when Ben Bernanke’s term ends early in 2014? This Washington Post analysis of some of the possible candidates makes great reading for those staring at the U.S. electoral and economic tea leaves.