Move over John Kerry, and make room for Janet Yellen.
An odd thought, perhaps, given that diplomacy is U.S. Secretary of State Kerry's thing, while Fed Chair Yellen tends to monetary policy. But a unique feature of today's fragile and interconnected markets is how geopolitical fallout, particularly in Asia, will increasingly force the Federal Reserve to scale back its tightening ambitions.
"The U.S. central bank is very much carrying out actions to help soften problems that would usually be the role of the State Department," Boston bond-market veteran Dan Fuss said in Tokyo. While the Fed's mandate is domestic stability, it faces unprecedented considerations about destabilizing far-away nations Washington hopes to keep stable. "That's a huge concern," Fuss said. And a fast growing one.