And then there were two in the race to become the next head of the central bank
On Oct. 26 a report surfaced that two of the four primary candidates to become the next head of the Federal Reserve have pulled out of contention, leaving front runner Jerome Powell and the hawkish economist John Taylor as the two most likely to fill the top positions at the central bank.
Outgoing Fed Chairperson Janet Yellen was unlikely to retain her place at the head of the Federal Reserve when President Trump announced he would name his candidate as early as Nov. 3, and surprisingly one of the strongest picks, that of John Warsh, allegedly pulled out as well this morning for un-named reasons.
Remember all those articles yesterday about how Janet Yellen has a “great friend” in Trump, and not to discount her? Well, at least according to Politico,¬†the race for Janet Yellen and Kevin Warsh is now over.¬†According to Politico’s Ben White (so take it with a grain of salt), with Powell and Taylor emerging as the two Fed Chair finalists – with a likely outcome that both will enter, one as Chair and the other as Vice Chair – both Yellen and Warsh are officially out. To wit:
It‚Äôs hard to imagine but this saga gets stranger all the time. On Wednesday, one top MM source who talks regularly to President Trump said the only finalists are Jay Powell and John Taylor and the question is just which one gets it. This person said Janet Yellen is out as is Kevin Warsh. Gary Cohn, as we‚Äôve reported, has been out of it for weeks now. –¬†Zerohedge
According to most analysts, Powell is the one likely to retain many of the Feds current policies on interest rates and quantitative easing while Taylor is a true economic modelist who is most famous for his Taylor Rule which focuses on keeping interest rates at certain levels in accordance with economic data.
But in the end we still really do not know who will be the final choice to run the central bank because as we know from Trump so far in his Presidency, his mind can and does change from day to day, and hour to hour.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.