Bernanke's New Wall Street Job Will Bring 'Value and Volatility' to Markets

NEW YORK (TheStreet) -- Ben Bernanke still has the ability to move markets. Though the former Federal Reserve chairman has passed the baton to Janet Yellen, he has a new job as senior adviser to the investment firm Citadel. Bernanke's star status is likely to help the firm woo more clients. But he will also have a platform to comment on the economy and markets, and those comments are likely to be widely followed by investors. Must Read: Warren Buffett's 7 Secrets to Dividend Investing Revealed "I think it's certainly going to bring value to the markets, or at least volatility," said Lindsey Piegza, chief economist at Sterne Agee. "If we continue to hear comments talking about what Bernanke would do in terms of monetary policy or if he goes so far as to forecast what he anticipates in terms of the pathway for rates, that will certainly add additional momentum to the market." Bernanke is just the latest high-level Washington official to join Wall Street. Bernanke's predecessor, Alan Greenspan joined John Paulson's hedge fund once his tenure at the central bank was up. "Bernanke does have certain insights in terms of policymaking and that can give additional benefit to any market player that's trying to time and understand the pathway for rate increases," Piegza added. Speaking of interest rates, Piegza takes the less popular view that a rate liftoff will occur in 2016, rather than mid-to-late September of this year, as economists have been forecasting. "2016 seems [to be] the appropriate amount of time needed to get the economy on very firm footing," she said. "It's beyond the confidence or the relative improvement. We need to see outright strength in the economy, and right now we're still seeing a lot of downward pressure." She says analysts have been quick to dismiss the weak economic data recently, chalking up the stumbles to cold weather or the West Coast port dispute. "Those trends came in play before those disruptions and now continue as we roll into the second quarter, suggesting there was more than mother nature at play when we're looking at that underlying weakness," she said. Economists await March's consumer price index, which is scheduled for release Friday morning by the Bureau of Labor Statistics. Consumer prices are expected to increase 0.2%. Must Read: Former Fed Chair Bernanke Blogs About Why Low Interest Rates Are Here to Stay

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