Trump Inches Closer to Nominating New Fed Chair

On October 11th, President Trump met with Stanford Economist John Taylor about assuming the role of Chair of the Federal Reserve when Janet Yellen’s term leading the Fed’s Board of Governors expires in January. Speculation has swirled for months over who will assume the role of Chair, although some pundits place Taylor’s chances as slim. Some current board members are even encouraging President Trump to nominate Yellen for another 4-year term heading America’s central bank.

Recent polls actually have another board member, Jerome Powell, as the most likely selection. Powell appears to have the support of Treasury Secretary Steven Mnuchin. The Federal Reserve acts as the central bank for the United States, setting American monetary policy, promoting financially stable markets, supervising financial institutions, maintaining the safety and efficiency of American payment systems, and pursuing community advancement. The Federal Reserve is responsible for many provisions under the Dodd-Frank Act, including regular stress tests of banks. The next Chair could play an integral role in helping Congressional Republicans and Secretary Mnuchin roll back many of the regulations implemented under Dodd-Frank.