'Low-Interest-Rate' Yellen, Cohn Are Trump's Top Picks for the Fed
Janet Yellen and Gary Cohn are both among President Donald Trump's top picks to head the Federal Reserve.
The president said he likes Yellen's "demeanor" and described her as a "low-interest-rate person" in a July 25 interview with The Wall Street Journal, the transcript of which was obtained by Politico. Of Cohn, currently director of the National Economic Council, Trump said he too is in the running but isn't sure if he would want the job. He declined to comment on other figures potentially under consideration.
"I have a lot of respect for her, and I like her. I've met her just a couple of times, but I like her," Trump said of Yellen, the head of the Federal Reserve whose tenure expires in February.
The president indicated his preference for low interest rates, reiterating a point he's made in the past. "I'm not making that a big secret. I think low interest rates are good. I like a dollar that's not too strong. I mean, I've seen strong dollars," he said. "And frankly, other than the fact that it sounds good, lots of bad things happen with a strong dollar."
Trump confirmed that Yellen is "in the running" for him to renominate her to head the Fed. "I would say yes, she is in the running to stay."
The president also said Cohn, who is leading the search for the next Fed chair, is also under consideration. "He doesn't know this, but yes, he is," Trump said, though he clarified he's not sure if Cohn actually has a desire to hold the position. "I don't know that Gary would want it. I think Gary loves what he's doing, you know, and he's doing a very good job."
For weeks there have been rumblings that Cohn, the former president and COO of Goldman Sachs (GS) - Get Report , might be seeking the spot at the helm of the United States central bank.
"We've had Wall Street transplants running regulatory agencies for a while, and they've done an admirable job in their roles," said Jack Ablin, chief investment officer at BMO Private Bank, in a recent interview with TheStreet.
Trump said in the July WSJ interview that he plans to announce his decision regarding the next Fed chair by the end of the year. He declined to mention other figures potentially in the running, speculation about which has been swirling for some time.
The president's comments on Yellen are a reversal from his campaign-trail stance. During the election, he accused Yellen of holding interest rates artificially low to aid Democrats and of creating a false economy. At a September debate with rival Hillary Clinton, he declared the Fed was "not doing their job" and contended the apolitical body was being "more political" than his opponent.
He also said he would "most likely" seek to replace Yellen while campaigning.
But now, the president seems to be on board with the thought of Yellen continuing her work at the Fed, given her dovishness and his hopes to boost economic growth.
"She's always been -- you know, she's historically been a low-interest-rate person, a believer," he said.
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