It’s the Fed that sets the rate game rules

Last month, Ben Bernanke took over as head of president George W Bush’s Council of Economic Advisers. Bernanke is also the front runner for the post of chairman of the Federal Reserve, when Alan Greenspan ends his long reign as the most influential economic player in the world in January.

So what Bernanke has to say about the world economy and the prospects for economic growth and financial assets must not be taken lightly. He has been developing an important thesis on this.