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Yellen, Cohn In The Running For Next Fed Chair

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Yellen, Cohn In The Running For Next Fed Chair
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President Donald Trump has identified at least two top candidates for Chairman of the Federal Reserve: current Chairwoman Janet Yellen and Trump’s economic advisor Gary Cohn, according to a Wall Street Journal report.

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.

The news comes as the Fed conducts its July meeting. Followers of the Fed’s actions are expecting it to leave interest rates unchanged.

Trump: ‘A Lot Of Respect’ For Yellen

Yellen began her career at the Fed in 2004, when she was named President of the San Francisco Federal Reserve Bank.

In 2010, Yellen was appointed Vice Chairwoman of the Fed, and began her term as Chair in 2014 under former-President Barack Obama.

Yellen is widely considered by economists and Wall Street to be a dove, meaning she doesn't tend to favor raising interest rates. As the past year has indicated though, she isn't opposed to hiking it up when needed.

Related Link: 7 Key Economic Data/Events To Watch In Q3

Yellen’s generally dovish tone is part of what keeps her in the running in Trump’s opinion, despite saying he would replace her in the past.

“I like her; I like her demeanor. I think she’s done a good job,” Trump told the WSJ. “I’d like to see rates stay low. She’s historically been a low-interest-rate person.”

The last time a Fed chair wasn't renominated by a new president was in 1978, when President Jimmy Carter nominated William Miller rather than Arthur Burns.

Cohn: From Head Hunter To Fed Head?

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.

Cohn has been leading the search for the next Fed chair, and wasn't widely considered to be in the running. “He doesn’t know this, but yes he is,” Trump told the WSJ.

Cohn had a reputation on Wall Street for having an aggressive and arrogant work style, which likely appeals to the brash, “tells it like it is,” persona of Trump.

As a member of the Trump administration, Cohn has been cited by news outlets as a globalist and a moderating force against Trump’s campaign policies and economic proposals. Cohn also supports reinstating the Glass-Steagall, which would separate investment and commercial banking.

Keep up with market-moving political news in real-time with Benzinga Pro.

Posted-In: Donald Trump Gary CohnNews Wall Street Journal Politics Federal Reserve Media General Best of Benzinga

 

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