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Summers’s Fed Put Beats Bernanke’s for Potency: Cutting Research

A Federal Reserve headed by Lawrence Summers may give financial markets even stronger support in times of stress than it did under Ben S. Bernanke.

That’s according to David Zervos, managing director at Jefferies LLC in New York, who served as a visiting adviser to the Fed in 2009. In a Sept. 3 report to clients he outlined what he called the “Summers put,” a reference to investors’ belief in the “Greenspan put,” the idea that the Fed under Alan Greenspan always acted to support financial markets.