Buteo Jamaicensis Bernakus

Bond markets are convinced Bernanke is a hawk:

Bond Firms Say Bernanke Will Be a Fed Inflation Hawk (Update1), Bloomberg: Wall Street's biggest bond-trading firms say Ben Bernanke will be as zealous in fighting inflation as Alan Greenspan... ''Bernanke's nomination does not change our outlook,'' said Lewis Alexander, chief economist at Citigroup in New York. ''The Fed has been hardening its rhetoric in response to emerging inflation risks. They are not ready to pause.'' ... [A]ll the dealers surveyed said the central bank will raise the target rate to 4 percent from 3.75 percent... They also said the Fed will reiterate that it will continue to lift rates at a ''measured'' pace... The Federal Open Market Committee will meet again five more times before July. None of the dealers believe policy makers will lift rates at every one of those meetings, the survey shows. ... The following are the results of the survey, conducted from Oct. 25 to Oct. 28.

                Drop    Dec. 31  March 30 June 30
Firm         Measured?  Target   Target   Target

ABN Amro         No      4.25%    4.50%    5.00%
BNP Paribas      N/A     4.25%    4.25%    4.25%
Banc of Amer     No      4.25%    4.75%    4.75%
Barclays Cap     No      4.25%    4.75%    4.75%
Bear Stearns     No      4.25%    4.75%    5.00%
CIBC World Mkts  N/A     4.00%    4.00%    4.00%
Citigroup        No      4.25%    4.50%    4.50%
Countrywide      No      4.25%    4.50%    4.50%
CSFB             No      4.25%    4.50%    4.75%
Daiwa            No      4.00%    4.25%    4.50%
Deutsche Bank    No      4.25%    4.75%    4.75%
Dresdner         No      4.25%    4.50%    4.50%
Goldman Sachs    No      4.25%    4.75%    5.00%
HSBC             No      4.00%    4.00%    4.00%
JPMorgan Chase   No      4.25%    4.50%    4.50%
Lehman Brothers  No      4.25%    4.75%    4.75%
Merrill Lynch    No      4.25%    4.50%    4.50%
Mizuho           No      4.25%    4.25%    4.25%
Morgan Stanley   N/A     4.25%    4.50%    4.50%
Nomura           No      4.00%    4.25%    4.50%
RBS Greenwich    No      4.25%    4.75%    5.00%
UBS Securities   No      4.25%    4.25%    4.25%