Fed Hike Aftermath Series: Potential contenders to Fed Chair

U.S. President Donald Trump has been critical of the U.S. Federal Reserve over its regulations and lower level of interest rates. With Fed Chair Janet Yellen’s first four-year term expiring in February 2018, a change looks imminent. Here are some potential candidates,

• Fed Chair Janet Yellen: Though President may not choose her ultimately to run the Fed, economists believe that she is the best-suited candidate for the position and also the favourite. Her dovish rhetoric might actually cost her job.
   
• National Economic Council Director, Gary Cohn: He has been a candidate to replace Janet Yellen for quite some time now. He is President Trump’s chief economic advisor and a former investment banker. Internal but unconfirmed reports suggest that President Trump is unlikely to pick Mr. Cohn as the next Fed chair.
   
• Former Fed Governor, Kevin Warsh: A few weeks back, he was the favourite but his star faded recently. His academics were weaker than the others and his previous tenure as Fed Governor has been widely criticized.
   
• Fed Governor, Jerome Powell: Jerome Powell has been serving as a Fed Governor since 2012. He could be picked for the post as he is widely recommended and especially by the Treasury Secretary Steven Mnuchin.
   
• Stanford University Professor, John Taylor: He is very well-known for his 1993 paper, where he proposed the famous Taylor rule. It is being reported that he has impressed President Trump during his interview with the President.

President Trump is expected to announce his pick for the Fed Chair before his Asia trip on 3rd November. We expect Mr. Trump to pick either Mr. Powell or Mr. Taylor.