Friday, April 28, 2017

HOT SPECULATION: Trump Could Replace Yellen at the Fed With Former Goldman Sachs President

Gary Cohn, the next Fed prez?

Should President Donald Trump choose to replace Fed Chair Janet Yellen, or if she would leave on her own, former Goldman Sachs president Gary Cohn could be the leading replacement.

That's crony Wall Street insider speculation according to CNBC.

Cohn currently is Trump's top economic adviser and serves as head of Trump's National Economic Council.

"The buzz among those who claim Cohn confides in them is that he would like to eventually replace" Yellen, assuming Trump decides to move in a different direction when the chair's term ends in early February, Beacon Policy Advisors said in its daily report for clients Tuesday.

"On paper, Cohn likely meets Trump's expected top two requirements for a Fed chair candidate," the Beacon analysis said, specifically citing Cohn's advocacy for deregulation and his likelihood to keep interest rates low.

"He's the leading contender," said Christopher Whalen, an insider in the banking world and currently head of Whalen Global Advisors. "Every Fed chairman in recent memory going back even to (Paul) Volcker went through the White House in one way or the other. ... It would certainly make sense."

Other potential candidates, according to CNBC, are Kevin Warsh, Thomas Hoenig and John Taylor.

I would scratch Taylor from the list, Trump is in favor of money pumping and he is not going to put at the head of the Fed a guy like Taylor who would be in favor of instituting a "monetary rule," which would limit the Fed's ability to dramatically lower interest rates.

-RW 

2 comments:

  1. Perhaps they should simply rename the Fed and Treasury Goldman Sachs.

    ReplyDelete
    Replies
    1. Sounds fair as the bankers named those institutions.

      Delete