I was hoping that President Trump would appoint Janet Yellen for a second term as Chair of the Federal Reserve. She has kept a steady hand, presiding over an improving economy without letting inflation take over. Besides, I like the idea of having a woman as the most powerful global financial official.
Trump had apparently winnowed his choices to three: (1) reappoint Yellen; (2) Jerome Powell, who currently is a member of the Fed Board; and (3) John Taylor, a Stanford University economics professor.
Of the three, Yellen was no doubt the best choice; but Trump just can't bring himself to endorse anything Barack Obama did, and Yellen was an Obama appointee. Powell is by far a better choice than Taylor, who has some controversial ideas about monetary policy that don't have wide support. Here's what the New York Times editorial board said about it:
""Donald Trump has not proved himself to be much of a talent scout; as president he has tended to pick far right zealots, inept toadies, conflicted swamp dwellers and unqualified family members for top jobs. So it is a relief that he picked a level-headed and competent person to lead the Federal Reserve . . . .
"By choosing Jerome Powell, a Republican respected across the political spectrum, Mr. Trump has opted for continuity and stability. rather than disruption and destruction. Mr. Powell has been a solid member of the Fed Board since 2012 and has supported its current chair-woman Janet Yellen . . ."
The editorial goes on to say Ms. Yellen would have been the best choice; and it encourage her to keep her seat as a member of the Board through the rest of her Board term (2024) even though her term as Chair ends in 2018. The Board will continue to profit from her experience, and will also hold a seat that would otherwise give Trump another one to fill.
Ralph
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