President to Announce His Choice For Federal Reserve Chairperson in Early November

By Maharsh Barot, National News Writer

The choice of a new Federal Reserve Chairperson may be made soon, according to the White House. President Trump confirmed to reporters in the Rose Garden that he has narrowed down the selection for the position to five final candidates.

Bloomberg reported that the list of potential chairpersons are Stanford University economist John Taylor, National Economic Council director Gary Cohn, former Federal board member Kevin Warsh, current board member Jerome Powell, and current Federal chair Janet Yellen.

After meeting with Janet Yellen on Thursday, October 19, the President concluded his meetings with the five candidates. According to Politico, White House spokeswoman Natalie Strom has asserted that all candidates are at the same level of consideration at the present time.

While no official decision has yet been made, administration officials have stated that Federal Reserve Governor Jerome Powell is a leading candidate to replace Janet Yellen as Chairperson. This was also suggested in the transcript of an interview with President Trump distributed by Fox Business, along with the possibility of John Taylor being appointed Vice Chairperson.

Jerome Powell, also known simply as Jay, is a Republican who has served the federal board for five years and holds private sector experience. He has voted with Janet Yellen on various post-crisis financial laws and monetary policy decisions such as low interest rates, of which President Trump has also expressed support. Many perceive Powell as a “continuity” candidate – one who would likely not deviate from current central bank policies. Powellhas received relatively few criticisms from lawmakers of both parties.

Should he be chosen, John Taylor would be assuming the chair recently vacated by Stanley Fischer. According to Bloomberg, Taylor was Undersecretary of the Treasury for International Affairs from 2001 to 2005, an advisor on the presidential campaigns of President George W. Bush and Senator John McCain, and served on the Council of Economic Advisors under three presidents. In contrast to Yellen and Powell, he has advocated for higher interest rate policies.

The Gazette reported that Yellen’s four-year term expires in February of 2018. She is notable for being the first woman to lead the United States’ central bank. President Trump is expected to make his choice about her replacement on or before his trip to Asia in early November. “I will make my decision very shortly, pretty shortly,” Trump said in the transcript of the recent Fox Business interview, which was released on October 20. The interview is set to air on Sunday, October 22.

 

A version of this article appeared in the Tuesday, October 24th print edition.

Contact Maharsh at

maharsh.barot@student.shu.edu

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