President Donald Trump said he has a “lot of respect” for Federal Reserve Chair Janet Yellen and that she’s still in the running to remain at the helm of the U.S. central bank, while indicating that White House aide Gary Cohn was also a top contender for the position.
Trump told the Wall Street Journal in an interview on Tuesday that Yellen, 70, whose term as chair expires in February, “is in the running, absolutely,” adding that he liked her personally. “I’d like to see rates stay low. She’s historically been a low-interest-rate person,” he told the newspaper, according to its website.
Fed officials began a two-day policy meeting in Washington earlier on Tuesday and are expected to leave borrowing costs unchanged when they announce their decision at 2 p.m. on Wednesday.
Politico had reported earlier this month that the Fed job was Cohn’s if he wanted it, citing unidentified sources. But Trump hasn’t indicated that he had ruled Yellen out.
“I like her; I like her demeanor. I think she’s done a good job,” Trump said, according to the Journal.
Cohn, 56, director of the White House National Economic Council, was present during the interview, according to the Journal story. Trump said that “I’ve known Gary for a long time, but I’ve gained great respect for Gary working with him, so Gary certainly would be in the mix.” The former Goldman Sachs Group Inc. executive has indicated that he’s happy in his current position.
“Many people in the market, I don’t think they wrote off Yellen completely, so I don’t think this comes as a huge surprise to investors,” said Roberto Perli, a former Fed official who’s now head of global monetary policy research at Cornerstone Macro LLC in Washington. “Policy is very unlikely to change drastically, no matter who gets there,” Perli said. “The Fed chair is important, but it’s not an emperor.”
Trump indicated that two or three other contenders, whom he declined to name, are in the running. He said he probably wouldn’t announce the decision until the end of the year, the newspaper said. The nomination requires approval by the U.S. Senate.
This article was provided by Bloomberg News.