Trump’s Search for the Next Federal Reserve Chair Intensifies

Investing.com - U.S. President Donald Trump will meet with Federal Reserve Chair Janet Yellen on Thursday as his search for the next head of the central bank intensifies.It is believed Trump will interview Yellen about potentially staying on as Fed chair after her current term ends in early February.Trump criticized Yellen during his presidential campaign, accusing her of keeping interest rates low to prop up the economy under former President Barack Obama.The meeting comes after a White House official said that Trump met with Stanford University economist John Taylor to discuss the job last week.Taylor is considered one of the more hawkish candidates in the running to become the next Fed chairman and his “Taylor Rule” implies that interest rates should be much higher than they are now.There are also a number of other contenders in the running, including Fed Governor Jerome Powell and former Fed Governor Kevin Warsh.Both Taylor and Warsh have been vocal critics of the Fed’s quantitative easing program.Trump must choose between embracing continuity or potentially propelling the U.S. central bank into what could be a market-shifting change of direction when he decides on the next Fed chair.