Economy

Investors await Trump's Federal Reserve chair pick

Investors await Trump's Federal Reserve chair pick”

The U.S. dollar climbed against most major currencies on Tuesday as market attention turned to who will be the next head of the U.S. Federal Reserve.

Powell has been on the Fed board for five years and voted to support Yellen's low interest-rate policies - criticized by Trump during his presidential campaign as being overly political, kept low to favor Democrats.

Although he appears to be tilting to Powell and Taylor, in addition to Yellen the Republican president has interviewed his top economic adviser Gary Cohn and former Fed Governor Kevin Warsh for the Fed chief position.

Yellen, speaking at an economic conference in Washington on Friday evening, mounted a strong defence of the tools the Fed has used to fight the sharp economic downturn triggered by the financial crisis and said there was a risk of another crisis in which those "unconventional policies" may be needed again.

"Powell would follow very close to Yellen and would be a great choice for the market", said Paul Zemsky, chief investment officer, Multi-Asset Strategies and Solutions at Voya Investment Management in NY. And questions about Warsh's qualifications - he isn't an economist by training - emerged among some aides. He's been backed by Mnuchin, who has orchestrated Trump's Fed search, and is widely viewed by analysts as a consensus pick for the chairman post.

After Trump's meeting with Yellen on October 19, he indicated he was still considering re-nominating her for a second term, which would be in keeping with a tradition of US presidents keeping their predecessor's Fed chair in the job.

Famous for a formulaic approach to monetary policy, including the so-called Taylor Rule, he is seen as likely to tighten monetary policy more quickly. I also met with Janet Yellen, who I like a lot. "So I have three people that I'm looking at", he told Fox Business' Maria Bartiromo in a recent interview.

Cohn is now director of the White House National Economic Council and is a former president of investment bank Goldman Sachs.

"I think Powell might be the safer pick insofar as we know what we're getting", said Michael Feroli, chief USA economist at J.P. Morgan Chase.

"I think in their hearts every modern Fed chair knows that the institution's mandate has to include stock prices", said Nicholas Colas, co-founder at DataTrek Research in NY.



Like this

Latest


25 October 2017
Leeds United: Boss Christiansen has no complaints as Whites exit Carabao Cup
Leicester City winger Demarai Gray has explained that his side are aware of Leeds United's resilient nature, ahead of the teams' meeting in the EFL Cup tonight.

25 October 2017
Could Activision Blizzard, Inc. (ATVI) Dividend Cut Likely Be In The Works ?
Allen Investment Management LLC acquired a new stake in Activision Blizzard in the 2nd quarter valued at approximately $2,095,000. Commercial Bank Of America Corporation De has invested 0.06% in Activision Blizzard, Inc . (NASDAQ: ATVI ) for 54,550 shares.

25 October 2017
India vs New Zealand 2nd ODI: Bowling coach backs wrist spin duo
Numerous tours to India for national team and stints with IPL franchise certainly came in handy for the 33-year-old. Past year they lost the decider in Visakhapatnam to go down 3-2, mirroring the final scores in 1995 and 1999.

25 October 2017
Astros or Dodgers? Sporting News experts make their picks
The Dodgers will be at home for the first two games before heading to Houston's Minute Maid Park for Game 3 on Friday. Want more World Series coverage? The Dodgers haven't won a championship since they last won the NL pennant in 1988.

25 October 2017
Matt Damon appears as George Clooney's nanny on 'Jimmy Kimmel Live'
But this level of criminal sexual predation is not something that I ever thought was going on. And hey, we can also appreciate a good joke. " He didn't do it out in the open", Damon said.

25 October 2017
Voice of 'The Lion King's Rafiki, Robert Guillaume, passes away
He received a Tony Award nomination in 1976 for his performance as Nathan Detroit in an all-black production of Guys and Dolls . Actor Robert Guillaume pose for Pictures at the 2000 Essence Awards held at Radio City Music Hall in New York City.

25 October 2017
Auto Industry to Washington Pols: Keep NAFTA in place
Some vehicles assembled by American companies in Canada or Mexico could be hit with import tariffs . In his recent letter to Trump, the president of the U.S.

25 October 2017
Degrees Round-The-Year For New Border Posts Near China: 10 Points
He announced that 35 old border posts in very high-altitude areas are also being upgraded as "composite" units. The paramilitary was also enhancing its intelligence setup, he added.

25 October 2017
Toronto's Sebastian Giovinco drinks mid-match beer
Later on, in the 84th minute of the match, Giovinco would score a clutch free kick goal, which evened the score at 2-2. His second-half free kick goal was the sixth of the season for the Italian, which is a new MLS regular-season record.

25 October 2017
The Travelers Companies, Inc. (TRV) Given New $145.00 Price Target at Argus
Following the completion of the sale, the insider now owns 253,744 shares in the company, valued at approximately $32,134,140.16. It now has negative earnings. 01/17/2017 - The Travelers Companies, Inc . was upgraded to "outperform" by analysts at Macquarie.



Recommended