Yellen or Cohn: Trump's Candidates To Lead the Federal Reserve

Fed Chair Janet Yellen Testifies At Senate Hearing On Semiannual Monetary Policy Report To Congress

Janet Yellen was the vice chairwoman of the Federal Reserve from 2010-2014, then in 2014, she was appointed chairwoman by former President Obama.

President Donald Trump said he may reappoint Federal Reserve chair Janet Yellen to a second term at the helm of the United States central bank, while indicating that White House aide Gary Cohn was also a top contender for the position. "I think she's done a good job", Trump was quoted as saying.

Trump has said that, as a property developer with outstanding debt, he "always loved" low interest rates. "She's historically been a low-interest-rate person".

Cohn joined the Trump administration as the president's chief economic advisor and Director of the National Economic Council after a 26-year long career at Goldman Sachs. In a hearing before the House Financial Services Committee earlier this month, the current Fed chair skillfully dodged questions about her future at the central bank.

"Many people in the market, I don't think they wrote off Yellen completely, so I don't think this comes as a huge surprise to investors", said Roberto Perli, a former Fed official who's now head of global monetary policy research at Cornerstone Macro LLC in Washington.

Yellen's term as chair doesn't end until February, so making a decision any time soon would be premature, as Trump noted during the WSJ interview, adding that a formal nomination will likely not be made until the end of the year. "I like her demeanor". However, in April this year, Trump also said that he was open to the possibility of Yellen serving another term. Miller was installed by President Jimmy Carter, who would soon make Miller his Treasury secretary to make room for Paul Volcker as chairman of the Fed. Any Fed nominee would need Senate confirmation.

Trump was critical of Yellen during last year's presidential campaign, accusing her of keeping interest rates low to favor Democrats.

Related:

Comments


Other news