US President Donald Trump is to make public this week the name of the next president of the US Federal Reserve (Fed). In addition to current Fed President Janet Yellen, four other candidates are running.
The term of Janet Yellen appointed in 2014 by Barack Obama ends in February. The name of whoever will lead the Fed for the next 4 years is highly anticipated because it will tell a lot about the intentions of Donald Trump in monetary matters.
Two candidates embody the continuation of the current policy of gradually raising interest rates to support growth: Janet Yellen herself or Jerome Powell, already a member of the board of governors of the Fed and favorite of Secretary of the Treasury Steven Mnuchin.
If the president wants to further deregulate the financial markets, he could choose Kevin Warsh, a former banker at Morgan Stanley and close Republicans. Or Gary Cohn, ex-number 2 at Goldman Sachs and economic advisor to the White House.
Finally, if he intends to reduce the room for maneuver of the Fed, Donald Trump could appeal to John Taylor, professor of economics at Stanford, which is favorable to setting interest rates using a mathematical formula.