White House Said to Weigh Many Fed Chair Con­tenders

The Bond Buyer - - Market News -

The White House is con­sid­er­ing more than a half-dozen can­di­dates to be the next head of the Fed­eral Re­serve, in­clud­ing econ­o­mists and busi­ness peo­ple, with a goal of fill­ing out a de­pleted board with ex­per­tise rang­ing from fi­nan­cial reg­u­la­tion to com­mu­nity bank­ing, ac­cord­ing to three peo­ple fa­mil­iar with the mat­ter.

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 Chair Janet Yellen, whose term ex­pires in Fe­bru­ary.

Some of the other pos­si­ble con­tenders in­clude for­mer Fed Gov­er­nor Kevin Warsh, Columbia Univer­sity econ­o­mist Glenn Hub­bard and Stan­ford Univer­sity pro­fes­sor John Tay­lor, one of the peo­ple fa­mil­iar said. Lawrence Lind­sey, a for­mer eco­nomic ad­viser to Pres­i­dent Ge­orge W. Bush, has been dis­cussed. For­mer US Ban­corp CEO Richard Davis and John Al­li­son, the for­mer CEO of BB&T Corp., have also been con­sid­ered.

Pres­i­dent Trump said in July that both Yellen and Cohn, a for­mer Gold­man Sachs Group Inc. pres­i­dent, were be­ing con­sid­ered for the top Fed job. Since then, Cohn’s prospects have grown cloudy af­ter he pub­licly crit­i­cized re­marks the pres­i­dent made af­ter of racially charged vi­o­lence in Char­lottesville, Va. The Wall Street Jour­nal re­ported Wed­nes­day that Trump is un­likely to pick Cohn, and three peo­ple close to Trump told Bloomberg that Cohn’s prospects have dimmed.

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