President Donald Trump and Stanford University economist John Taylor, who is to be the next chairman of the Federal Reserve are meeting this week, three people said.
Once the meeting was to occur the folks were unsure.
Taylor is a renowned monetary economist whose rule on setting policy is used as a benchmark by the Fed and other central banks. Where Republicans have pushed Chair Janet Yellen to move toward a policy he’s also a frequent watch at hearings. Yellen has resisted efforts to curb or audit the Fed’s discretion arguing it needs flexibility to react to shocks to the economy.
Fed chair succession has become among the most anticipated White House decisions in financial markets. Yellen’s term ends in February, and Vice Chairman Stanley Fischer has announced his retirement and is serving his last week in office.
Yellen’therefore management of monetary policy has underwritten the third-longest growth in U.S. history. Unemployment last month dropped to 4.2 per cent, the lowest rate since 2001. Trump says that he admires her and hasn’t ruled her renomination out, White House advisers are pushing for a change and are concentrated on a leader with a more powerful intent to ease regulations, though.
The president can also be said to be thinking about former Fed Governor Kevin Warsh, National Economic Council Director Gary Cohn and Present juvenile Jerome Powell. Trump has said he’ll make a determination within fourteen days.
Taylor checks lots of the boxes White House officials are searching for. He served on the Council of Economic Advisers under three presidents, also has been an adviser on the presidential campaigns of George W. Bush and John McCain. He was Undersecretary of the Treasury for International Affairs from 2001 to 2005.
Taylor, 70, testified before a House Financial Services subcommittee in March.
The Fed “ought to be required to embrace and explain its strategy, and then compare that strategy with monetary policy rules that are out there in a way,” lawmakers were told by Taylor.
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