Who will chair Fed?
US President Donald Trump has concluded interviews with the five candidates he is considering to chair the Federal Reserve and could announce a decision as early as next week.
washington — President Donald Trump has concluded interviews with the five candidates he is considering to chair the Federal Reserve and could announce a decision as early as next week, a source familiar with the process said.
Trump met with current Fed chair Janet Yellen on Thursday. That meeting “went well”, the source said, adding that Trump had not made up his mind one way or the other about his list.
“I don’t think he’s leaning yet,” the source said.
Other contenders to lead the US central bank are top Trump economic adviser Gary Cohn, Fed Board Governor Jerome Powell, former Fed governor Kevin Warsh and Stanford University economics professor John Taylor.
Powell, who is viewed as representing a continuation of Yellen’s gradualist approach to raising interest rates, along with Warsh, are seen as the top contenders.
Despite his time as Fed Governor under Chair Ben Bernanke, Warsh is seen as a less well-known nominee. He has criticised the Fed’s bond-buying programme and advocated changes in its inflation target. US Treasury yields briefly renewed their drop late on Thursday after Politico reported that Trump was leaning toward nominating Powell for the job. Trump leaves on November 3 for a tour of Asia and is expected to announce his choice before that trip.
The president told reporters on Tuesday that he likes all five candidates. “I’ll make a decision over the next fairly short period of time,” Trump said.
Meanwhile, a member of the US House of Representatives’ Freedom Caucus mounted a campaign to kill any chance of a second term for Yellen, the latest sign conservative Republicans want a fresh face at the helm of the Fed, which sets US monetary policy.
Representative Warren Davidson, a Republican on the House Financial Services Committee’s monetary policy panel, is among those who want a change. He is circulating a letter opposing Yellen’s reappointment, the Ohio congressman’s spokesman said.
“Davidson is very passionate about this process,” the spokesman
I’ll make a decision over the next fairly short period of time US President Donald Trump
said, adding that the lawmaker is particularly concerned about the impact Fed policy has had on the ability of small firms to raise operating funds.
Members of the Freedom Caucus, the most conservative Republican grouping in Congress, have been critical of Yellen, with some accusing her of keeping monetary policy too loose. Key members of the House Financial Services Committee also have backed ideas proposed by contenders to replace Yellen. Taylor’s research, for example, figured prominently in a Housepassed bill requiring the Fed to explain its actions through a strict set of rules. —