White House Considering Mohamed El-Erian For Fed Vice Chair

Tyler Durden's picture

In what will come as a big surprise to many Fed watchers, moments ago the WSJ reported that among other candidates, Mohamed El-Erian, former deputy director of the IMF, former head of the Harvard Management Company, Bill Gross' former partner at Pimco until the duo's infamous falling out, and one of the few people who - together with John Taylor - actually deserve the nomination, is being considered for the Fed Vice Chairman role. DJ also added that Kansas banking regulator Michelle Bowman is also being considered. From the WSJ:

The White House is considering economist Mohamed El-Erian as one of several candidates to potentially serve as the Federal Reserve’s vice chairman, according to a person familiar with the matter.

The process of selecting the Fed’s No. 2 official began this month after President Donald Trump nominated Fed governor Jerome Powell to succeed Fed Chairwoman Janet Yellen when her term expires next February.

The WSJ adds that there is a broad range of candidates under consideration for post, and that the White House will focus on monetary policy experience for post.

Reportedly, the White House is also considering the nomination of a Kansas banking regulator for a seat on the Fed’s board of governors, according to two people familiar with the matter.

Michelle Bowman was confirmed as the Kansas bank commissioner in January and would be nominated to a spot reserved for a community banker or regulator of community banks. In 2014, Congress reserved one of seven seats on the Fed’s board for a community banker and the position has never been filled.

For those unfamilair, here are some recent perspectives on El-Erian's recent thoughts:

And some recent notable quotables:

  • "The Fed's embarked on this beautiful normalization: It has stopped [quantitative easing], it has raised rates, it has declared a path to reduce its balance sheet without disrupting markets and without derailing the global recovery. And I don't think anybody will want to mess with this beautiful normalization”
  • “We don’t understand very well why inflation is low. And therefore, should inflation be an over-determining factor in monetary policy? On the other hand, how concerned is the Fed about elevated asset prices?”
  • “I suspect the market is too sanguine when it comes to how much central bankers are thinking about the risk of financial instability down the road."

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Cafe Baghdad's picture

We have all heard of Rothschild and Rockfeller, but ontop of them sits David Sassoon, master of asian opium.


He controls everything, markets oil, Banks.

He was thrown out of Baghdad in 1812.


Everybody works for him. Everyone in the USA and everyone in Europe.

His son Abdullah anglicised Albert married Aline Caroline de Rothschild in 1887.


he owns your ass.

eclectic syncretist's picture

What about Bill Grant or Ron Paul?

On the other hand, my mother-in-law could come out of retirement and do a better job for the American people than any Fed Board member I can recall.

Juggernaut x2's picture

What about ending the fucking Fed?

shitshitshit's picture

Strange, how to put this... this guy obviously has not the required credentials to manage the printing presses, right?

Is he going to be some sort of fall guy?

Paul Kersey's picture

Goldmanite Dudly is retiring from the FRBNY, so he must be replaced with another Goldmanite, or, better yet, someone from PIMCO. With Goldman Sachs President Cohn in charge of the US economy, filling that Fed chicken coop spot with another banster fox will be easier to grease than a minor getting a Kevin Spacey Jiffy Lube. Once again, Americans will be taking it up ___ (fill in the blank).

"New York, October 14, 2008 - Mohamed El-Erian today won the Financial Times andGoldman Sachs Business Book of the Year Award"

What further endorsement could Mohamed El-Erian want?  Got to love that NWO.  

eclectic syncretist's picture

The most cogent guess would be that they feel like they need someone with El-Erian's understanding of bonds (and in particular, US Treasury BOND DEBT) to run the Fed now as we begin the final descent of the FedGovDollar into the annals of histories failures.

knukles's picture

Oh fuck me, no.  Not him.  Please dear God, not him.
OPtics alone would be very very poor
If you want somebody with some smarts, ex-Pimco, I'd suggest Paul McCulley.  He's a good guy.

Actually, Mr Yuckie-O could be good for gold.   Just sayin'

EddieLomax's picture

Definitely, at least restore the link between currency and gold.  Ever since that was broken the government debt has been doubling every 8 years.  That is the force that sucks the prosperity away from 90% of Americans.

The last thing we need are crypto-currencies, they're already multiplying and forking away as bad as the current fiat, but without its usefulness as a simple exchange instrument.

nsurf9's picture

Re:  "What about ending the fucking Fed?"

The only thing that can be added is NOW!

ebworthen's picture

When does Bernie Madoff get out of prison?

auricle's picture

Think of the FED as Superman. Grant and Paul are cryptonite to that institution. The private FED needs to be fired, then Grant and Paul should take their rightful place as the head of the US Treasury. 

syzygysus's picture

Curiouser and Curiouser.  El Erian, eh?

booboo's picture

Hmmm a Mohamad in the Jewish Temple you don't say? He will have to be circumcised first. Lets see if he is walking funny after the confirmation then we will know if the transformation is complete.

saldulilem's picture

I think he got that one covered

booboo's picture

maybe, but they call it a foreskin. not a covering.

onthedeschutes's picture

"actually deserves the nomination"  - Fuck you.  Nobody deserves the nomination to a parasitic institution that should not even exist.

Mr. Universe's picture

Bu bu but he was the deputy director of the IMF! Oh wait, that would be a disqualifier wouldn't it?

wet_nurse's picture

What are his thoughts on usury?

ParkAveFlasher's picture

Moot point in a pure fiat system.  Interest rates become theoretical abstracts in such a configuration.

Falconsixone's picture

Can this guy give me a few hundred billion?

TheSilentMajority's picture

He is just another dirty evil inflation-denier.

Another swamp thing.

Dirka dirka.

SilverCoinLover's picture

Trump: Mohamed, I 'm picking you for Fed Vice-Chair.

El-Erian: Great, I'll do it.

Trump: But you'll have to convert to Judaism first.

El-Erian: #&%$@!!!


tmosley's picture

I think he would find it to be essentially the same thing, right down to the dietary requirements and child raping.

Mr. Universe's picture

We can't be sure but Donald has really been working hard to bring Tiffany back into the fold, get her Bat-Mitzah and properly married off...

EddieLomax's picture

No one with the name Mohammed should be in the US or western world.  Time to stop exhalting that pedo sadist.

hooligan2009's picture

since the Fed only has the power to create stock market, housing and bond bubbles and collapses, and no ability to impact inflation, unemployment and economic growth (which are all meaningless indicators with error terms larger than their stated percentage changes) it mattrs naught who is appointed.

the same applies to the BoE, the BoC, the BoJ and the ECB - completely meaningless constructs folllowing a failed monetary policy expeirment for decades and a ludicrous one for ten years.

this chap is better qualified to be a fed governor or any other central bank voting member and has twice as much natrual talent and rhythmn.


Ajax4Hire's picture

When Mohamed El-Erian speaks, I listen.

I listen because he seems to be correct and accurate on so many aspects of finance, monetary policy and the economy.  He speaks with understanding of the details and vision of the large scale issues.

It would be an amazing advantage if the United States could get such a competent, well-versed person in such an important position.

Unfortunately, I do not have much hope given the political process he will have to endure.

vesna's picture

Mr. SUGAR HIGH, Fuck off!

Soul Glow's picture

He's not my top pick or even top 10 but he's better than any Fed member that is being considered.

bsdetector's picture

A mouthpiece that wants more inflation? I recommend "no" Mr. President.

itstippy's picture

El-Erian would be a great choice.  He has real experience in the financial world, not just acedemic economics.  He's not (overtly) political; he seems to be open-minded and not just constantly pushing an existing agenda.  He makes sense when he talks and writes.  He's not an arm-waving cheerleader for financial markets.

All that could change, of course, if he gets the position.  Fed membership changes people (see Greenspan).

If the Trump Admisinstration nominates a guy named "Mohamed", both the DNC and RNC will once again be running around with their hair on fire trying to figure out what to do about The Donald.  That's always highly desireable.  I'm not a Trump fanboy, but he does throw the two major political parties' hierarchy into utter chaos, and for that I applaud.

Doom and Dust's picture

Agreed, looks a good choice. But the fact that he isn't tribe either (like Powell) does make me think ((they)) and the kippah-in-chief are planning to crash it all, quite soon.

I'm alright with that too btw.


Quivering Lip's picture

For a moment lets "pretend" that the "Federal" Reserve is a private entity owned by US and non US banks. Let's also "pretend" that the major majority of the banks that OWN the "Federal" Reserve are owned by a small minority of families and or people.

That being said, does it really matter who the vice chairman of the "Federal" reserve is. Do intelligent people truly believe that these millionaires on the FED board will dictate to multi billionaires  and trillionaires monetary policies.

If they do, they are either liars or the dumbest fucks on the planet.

MrBoompi's picture

Nice spin, WSJ.  You make it seem like the White House gets to choose who they want.  The Federal Reserve, a private company the US government does not control, is owned by its member banks.  Therefore, every one of the fed's employees has been hand choesen by the banks.  Trump may pick from a pool of "candidates", but he has no control over the pool.  The old addage "I don't care who does the electing so longs as I get to do the nominating" is never more appropriate as it is in this example.  

buzzsaw99's picture

el erian never said he liked bitcoin.  in fact it sounds like the opposite:


But this is not to say that gold’s traditional role will not be re-established down the road. After all, central banks are in the later stages of reliance on unconventional monetary measures and, given this year’s spectacular price appreciation, cryptocurrencies are more vulnerable to unsettling air pockets.

RumpleShitzkin's picture

So you think cryptos are immune to bubbles?

pitz's picture

Good lord, why would Trump even consider anyone from the "leech" rather than "production" side of the economy?

If El-Erian is appointed, it will be confirmation that not only is Trump part of the swamp, he practically *is* the swamp epitomized.

onwisconsinbadger's picture

Mo and Jim Grant can solve this mess. Give them a chance. Believe me.

Ouagadoudou's picture

Krugmsn 2.0
To the stars and beyond !!!

UndertheDRADIS's picture

Max Kaiser, assuming he would live long enought to get his furnishings moved in.

Two Theives and a Liar's picture

Seeing Max's twitter rants lately, He would just push the detonator and blow himself up along with the FED! 

riskon.then.riskoff's picture

Jerome powel and mohamed el erian...


whosyerdaddy's picture

Susie Gharib's toe-sucking pantysniffer.

Bai Suzhen's picture

Jews have run it into the ground for so long, might as well let a Moslem have a chance at it.  BTW, aren't they against usury?

hooligan2009's picture

in el-arian's last "proper" job, after PIMCO's dismal investment returns, things fell apart..

remember this?

In a Wall Street Journal report he now describes as “the crusher”, Mr Gross allegedly told Mr El-Erian: "I have a 41-year track record of investing excellence…What do you have?" Mr El-Erian responded, "I'm tired of cleaning up your s***".

so.. bottm line is, along with central bankers, a complete fuck-up in making money in the real world. as longas bulsshit is the order of the day, all is fine - so he should fit right in.