President Donald Trump said Federal Reserve Chair Janet Yellen
is “excellent” but wouldn’t commit to reappointing her on Thursday, when he said he’ll announce his choice to lead the central bank starting next year. “I didn’t say that,” Trump told reporters when asked if she would be his nominee.
If Trump chooses someone to replace her, Yellen, 71, would become the first chair of the central bank not to be reappointed since 1979, when President Jimmy Carter replaced G William Miller with Paul Volcker. Her term ends in February. Trump is leaning toward appointing Federal Reserve Governor Jerome Powell to chair the Fed, according to three people familiar with the matter.
Other people on his shortlist for the job include his top economic adviser, Gary Cohn; former Fed Governor Kevin Warsh; and Stanford University economist John Taylor. Investors reacted favourably when Bloomberg News reported on Friday that Powell was the frontrunner for the job. The Bloomberg Dollar Spot Index dipped to session lows at the time, and yields on 10-year Treasury debt fell as much as four basis points to 2.42 per cent.