White House economic adviser likely to be next Fed chair, economists say

by Francis Monfort25 Aug 2017
A survey of economists revealed that majority of them thinks Janet Yellen will not be renominated as chair of the Federal Reserve, according to a Bloomberg report, citing a survey by the National Association for Business Economics.

The survey, which was conducted from July 18 to Aug. 2 among 176 economists, found that only 17% of them said Yellen will be chosen for another term. Yellen’s four-year term is set to end in February 2018.

Of the respondents who think Yellen will not be renominated and gave an opinion, 49% believe Gary Cohn, adviser to President Trump, is most likely to succeed Yellen. Other names that came up were former Fed Governor Kevin Warsh (9%), Stanford University economist John Taylor (6%), and the dean of Columbia University’s business school, Glenn Hubbard (4%).

The survey findings are similar to that of a July 27-28 survey of economists carried out by Bloomberg, the news outlet said. The two surveys were conducted after the Wall Street Journal published an interview where President Trump was shown to be considering both Cohn and Yellen.

The survey further found that a slight majority of the respondents anticipate the Fed to raise interest rates again this year. The expectation aligns with the median forecast the Federal Open Market Committee released in June. A majority of the economists also said they do not expect more than two increases next year

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