Trump weighing Yellen reappointment against making own mark on Fed

by Francis Monfort27 Oct 2017
Janet Yellen continues to be in the running for another term as chair of the Federal Reserve as President Donald Trump balances the desire to make his own mark on the central bank with the risk of a leadership change as the stock market rallies, Bloomberg News reported.

Trump said he would certainly think about renominating Yellen, the news outlet said, citing a transcript of a Fox Business Network interview with the president.

“In one way, I’d have to say, you’d like to make your own mark, which is maybe one of the things she’s got a little bit against her,” Trump said. “But I think she’s terrific, we had a great talk, and we’re obviously doing very well together if you look at the markets.”

Trump said he is now considering only “two and maybe three people” and will announce his choice “over the next very short period of time,” Bloomberg reported.

The field has reportedly been narrowed down to Yellen, Fed Governor Jerome Powell, and Stanford University professor John Taylor. National Economic Council Director Gary Cohn is no longer under consideration for the post, the report said, citing three people familiar with the matter. Former Fed governor Kevin Warsh’s chances at the post are unclear.

Since Yellen began her term as chair in February 2014, the S&P 500 has returned 55% and joblessness dropped to 4.2% from 6.6%. Earlier in the week of Oct. 24, US stock rose to record highs on positive earnings reports and steady overall economic growth, according to the Bloomberg report.

Related stories:
Trump to meet with Yellen about staying on as Fed chair
Big banks hope new Fed official will ease Dodd-Frank regs


Should CFPB have more supervision over credit agencies?