A source familiar with the discussions told the news outlet that the search process is in its initial stages and that an announcement is not likely within 2017.
CNBC said El-Erian offers a wealth of experience to the role, including serving as CEO of bond giant PIMCO.
If chosen, El-Erian would replace Stanley Fischer, who vacated the post in October. He would presumably be second in command to Jerome Powell, who was recently nominated by President Donald Trump for the Fed chair position to replace Janet Yellen upon the expiration of her term in February, CNBC said. The Senate has yet to confirm Powell’s nomination.
CNBC said that Trump has to fill three vacancies in the seven-member Fed board of governors. In case Yellen decides to leave the central bank when her term expires, the number of Trump appointees would become four.
According to the report, El-Erian is known for coining the term “new normal” during his term as PIMCO CEO. He also previously served as deputy director at the International Monetary Fund.
Mnuchin: Fed vice-chair need not be Ph.D. economist
Yellen yet to decide on diminished Fed role
The White House is considering Allianz Chief Economic Advisor Mohamed El-Erian for the vice chair role in the Federal Reserve, CNBC reported.