Looks like bonds reacted down earlier in the day expecting this news. This is the same guy who commented that he plans to shower $USD bills from helicopters to inflate away the debt. Everyone has been watching the DX waiting to go long on the break. The overnight EUR reaction here will be interesting. http://today.reuters.com/news/NewsA...31751Z_01_ROB453881_RTRUKOC_0_US-BUSH-FED.xml WASHINGTON (Reuters) - President George W. Bush on Monday nominated top White House economist Ben Bernanke to succeed Alan Greenspan as Federal Reserve chairman, and the former Fed board governor pledged to keep faith with the Greenspan era. If confirmed by the U.S. Senate, Bernanke, a widely respected monetary economist with a rich academic resume, would have huge sway over the world's mightiest economy. Greenspan, 79, is set to step down on January 31 after leading the central bank for more than 18 years through a period in which he cemented a reputation as a monetary policy "maestro." "Ben Bernanke is the right man to build on the record Alan Greenspan has established," Bush, flanked by Greenspan and Bernanke, said in a brief Oval Office ceremony. U.S. stocks logged their biggest one-day gain in six months as Bernanke's nomination laid to rest market uncertainty over who would be Greenspan's heir. Bond prices ended lower on worries a Bernanke Fed could take an easier line on inflation, despite his assurances on Monday that he would steer the central bank along Greenspan's course.