Trump Gets Final List Of Fed Candidates, Yellen Gets The Cold Shoulder

Picking up on a story reported previously by both the WSJ and Politico - oh and Bloomberg itself - Bloomberg writes that Trump’s advisers have delivered the final list of candidates they recommending as candidates to lead the Fed and have ended the search. While only a "small handful" of the president’s closest advisers have seen the final list of names, it did not prevent them from leaking it, and the result is what we already know from previous leaks namely that in addition to Yellen, Trump is considering Gary Cohn, Kevin Warsh and current Fed governor Jerome Powell, who as Politico reported overnight, is said to have the blessing of Steven Mnuchin.

Also confirming what the WSJ reported previously, Trump's chief economic advisor Gary Cohn - himself under consideration - has recused himself from the selection process.

In fact, the only incremental news in the latest report seems to be that while Janet Yellen remains under consideration, "few, if any, of Trump’s inner circle are advocating for her re-appointment."

Furthermore, we can cross out economist Glenn Hubbard and U.S. Bancorp Chairman Richard Davis, both of whom have been floated as possible candidates, although Trump has no intention of interviewing them.  A potential wildcard is Stanford economist John Taylor, a favorite of fiscal conservatives, who is also said to be under consideration.

It has also been previously reported that Trump has spoken to Yellen, Cohn, Warsh and Powell about the Fed post, although there is no frontrunner at the moment.

According to Bloomberg, "the latest developments show that Trump is closer to making a final selection than previously known." Last Friday, Trump said that he is "two or three weeks away from announcing his nominee" for the post overseeing the nation’s central bank.

Meanwhile, speaking at the Vanity Fair New Establishment Summit on Tuesday in Los Angeles, Jeffrey Gundlach - who accurately predicted Trump's presidency - predicted that Neel Kashkari would be picked as next Fed chair. "I actually have a very non-consensus point of view. I think it's going to be Neel Kashkari... He happens to be the most easy money guy that's in the Federal Reserve system today and that's why he may win."

The Bond King said that Trump needs someone who will keep rates low in order to keep his populist reputation and help his base voters and that's why he'll pick Kashkari. "A stronger dollar is not good for achieving that agenda," he said.

Gundlach also is confident that Yellen would not get reappointed: "I think there is no chance that she wants to be chairwoman, nor do I think the president wants her to be," said the manager of $109 billion.

Judging by the latest PredictIt odds, if Gundlach is right, and if he is willing to bet some money on it, he could make a killing, as Kashkari does not even have a contract. As to the current ranking, Warsh remains in top spot with 38% odds, although following today's Politico news, Powell surged to second place with 31% odds, and now following the Bloomberg report, John Taylor finds himself in third spot with 20% odds, above both Gary Cohn in 4th and Janet Yellen who has tumbled to 5th with just 13% odds of being reappointed.

Comments

J J Pettigrew Tue, 10/03/2017 - 21:24 Permalink

Make Yellen stay .... I want to watch HER get out of this theoretical "stimulus" that will prove in the end a $4 Trillion  money dump to those whocreated the systemic failure....Their "crisis" didnt go to waste...Repo failures, real estate pyramiding....all back and in full force....The fact that no one went to jail from the 08 debacle was guarantee for the recurrence  

Cabreado Tue, 10/03/2017 - 21:29 Permalink

It only takes an Act of Congress to dissolve the Fed.It only takes Focus on the part of the Citizenry to vigorously apply pressure.Oops.Looks like the People have failed.Per Warnings and predictions...

Horse Pizzle Tue, 10/03/2017 - 21:49 Permalink

If Janet removes her dentures she may get more traction.  The air head made it through grad school.  She climbed the ladder at the Fed.  This is not her first rodeo.

ThePhantom Tue, 10/03/2017 - 21:48 Permalink

the parasite is firmly attached to the host you can surely bet... trying to removing the parasite is nearly certain to "mostly" kill off the host

DavidC Tue, 10/03/2017 - 21:57 Permalink

Oh come on Tyler(s) - if she has ANY sense (and I will admit the jury might be out on that one) she will want to get out at the first available opportunity, sell her book (The Courage To Act, Part 2) and GET OUT before the shit hits the fan.

DavidC

NihilistZerO___ Yen Cross Tue, 10/03/2017 - 23:14 Permalink

At this point we just have to accept that Trump is Trump's Achilles' Heel.  The Wall, DACA, Refugees, anything related to his number 1 issue he's cucked on. I guess it could still be part of a greater play, but it's not looking good. Stopping the demographic shift is the one necessity. Anything else can be reversed. This invasion cannot. At least not politically. And I'd rather we don't have a Civil War.

In reply to by Yen Cross

Quivering Lip Tue, 10/03/2017 - 23:46 Permalink

Like it really matters who the FED HEAD is. Who really thinks the people and families that own the banks that own the FED are going to entrust their Trillions to some egghead making $201,000.