President Trump’s List Is Long For New Fed Chair
The White House is considering 6+ candidates to be the next head of the Fed, including economists and business people, with a goal of filling out the board with expertise ranging from financial regulation to community banking.
The breadth of the search goes against the narrative that has taken hold in Washington and on Wall Street that the Fed chair nomination is a two-horse race between National Economic Council Director Gary Cohn and current Fed Chairwoman Janet Yellen, whose term expires in February.
Some of the other possible contenders include the following:
- Former Fed Governor Kevin Warsh
- Columbia University economist Glenn Hubbard
- Stanford University professor John Taylor
- Lawrence Lindsey, a former economic adviser to President George W. Bush.
- Former US Bancorp CEO Richard Davis and
- John Allison, the former CEO of BB&T Corp
President Donald Trump said in July that both Ms. Yellen and Mr. Cohn, a former Goldman Sachs Group Inc. President, were being considered for the top Fed job.
Some people familiar with the process say President Trump is not yet deeply focused on the search. It is still being conducted by staff who are not ready yet to present him with a short-list of vetted candidates.
John DeStefano, the President’s chief personnel recruiter, is in charge of the search.
Having credible leaders at the Top of the Fed is Key for financial market stability. For now, investors are showing patience, trusting in Ms. Yellen’s leadership while they wait for the President to make a choice.
President Trump said in July that he would probably not decide until the end of the year.
He has a chance to fill 4 of the 7 Fed governor seats.
“It’s been glacial in filling some of these jobs, which is surprising because the president during the transition” talked a lot about “retaking control” of the central bank.
Randal Quarles, a Treasury officials during the George W. Bush (43) Administration, was approved by the Senate Banking Committee Thursday to fill one of those openings, though his pick still needs confirmation by the full Senate.
Carnegie Mellon University professor Marvin Goodfriend, a widely respected monetary economist, is being considered for a governor nomination.
Even with Messrs Quarles and Goodfriend in place, the White House would have 3 Fed vacancies: another governor, a vice chairman, and a new chairman.
The nominations of Messrs Quarles and Goodfriend show that the White House is also striving for diversity of professional experience, skills and geographic representation on the Fed Board, as required by law.
For now, investors are showing patience with the process as Ms. Yellen serves out her term.
The super thing about the intrigue within The Trump Administration is that what is true today cannot be true tomorrow.
HeffX-LTN’s approach is to ignore the speculation, as it is not a way to make money, we live in the Now.
Have a terrific weekend.