Exclusive: Contenders emerge for No.2 Fed job, search to narrow

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Exclusive: Contenders emerge for No.2 Fed job, search to narrow.

By Jonathan Spicer and Rob

Cox
NEW YORK (Reuters) – The

Federal Reserve Bank of New

York will soon narrow its

search for candidates to fill

what is considered the Fed’s

second-most powerful job after having

scouted a diverse field, from

a local business school dean

to a former Fed governor.

New York Fed President William

Dudley steps down in mid-2018

and people in contact with

the directors leading the search

for his successor say they

have so far considered several

economists, academics, investors, bankers and

policymakers.

’’They are looking beyond the

traditional mold’’ of an expert

in banking, markets or monetary

policy, and plan to start

trimming a preliminary list of

candidates in coming days, said

one person in contact with

the directors.

The New York Fed president

is at the intersection of

U.S. monetary policy and financial

markets, and is responsible for

the policing of Wall Street

and the diplomacy with central

bank counterparts around the world.

Unlike other top roles with

a permanent vote on policy,

the New York Fed boss

is nominated by the regional

bank’s board of directors rather

than the White House and

does not require Congressional approval.

Dudley’s successor could play an

even greater role guiding the

Fed through a historic leadership

change in which U.S. President

Donald Trump can fill six

of the seven seats on

the Fed Board of Governors.

He has so far named

Jerome Powell and Randal Quarles

– lawyers, not PhD economists

– to top positions in

Washington, with Powell replacing Chair

Janet Yellen who unlike her

predecessors will only serve one

term.

Both men support the Republican

push for Wall Street deregulation.

Yet their limited experience with

monetary policy has raised questions

over who will guide the

Fed’s tightening plans and over

how prepared it will be

to tackle any severe economic

downturn. The New York Fed

under then-president Timothy Geithner played

a critical role in U.S.

efforts to contain the financial

crisis in 2008.

By now the New York

Fed directors have kept it

open what an ideal candidate

profile should look like, according

to people familiar with the

search. Two of those people,

who declined to be named

given the sensitivity of the

process, said search firms have

contacted among several others Peter

Blair Henry, 48, dean of

New York University’s Stern School

of Business, and former Fed

governor Kevin Warsh,

Warsh, 47, who was in

the running for Fed Chair

before Trump picked Powell last

month, declined to be considered

for the New York job,

they said. One of these

people said Henry appeared to

be the early front-runner.

Henry and a spokeswoman for

Warsh at Stanford University’s Hoover

Institution, where he is a

visiting fellow, did not respond

to requests for comment.

WASHINGTON’S COUNTERBALANCE
The permanent-voting Fed governors need

a White House nod and

Senate approval. The other 11

district presidents vote every two

or three years under a

century-old rotation meant to emphasize

New York’s unique role as

a counterbalance to the Washington-based

board. Its president enjoys broad

independence and also serves as

vice chair of the central

bank’s rate-setting committee. (For a

graphic of the Fed’s ideological

doves and hawks, see: )

’’It’s a critical pos
#Exclusive: #Contenders #emerge #for #No.2 #Fed #job, #search #to #narrow #Exclusive:ContendersemergeforNo.2Fedjob,searchtonarrow

Exclusive: Contenders emerge for No.2 Fed job, search to narrow

Exclusive: Contenders emerge for No.2 Fed job, search to narrow.


By Jonathan Spicer and Rob

Cox
NEW YORK (Reuters) - The

Federal Reserve Bank of New

York will soon narrow its

search for candidates to fill

what is considered the Fed’s

second-most powerful job after having

scouted a diverse field, from

a local business school dean

to a former Fed governor.


New York Fed President William

Dudley steps down in mid-2018

and people in contact with

the directors leading the search

for his successor say they

have so far considered several

economists, academics, investors, bankers and

policymakers.


’’They are looking beyond the

traditional mold’’ of an expert

in banking, markets or monetary

policy, and plan to start

trimming a preliminary list of

candidates in coming days, said

one person in contact with

the directors.


The New York Fed president

is at the intersection of

U.S. monetary policy and financial

markets, and is responsible for

the policing of Wall Street

and the diplomacy with central

bank counterparts around the world.


Unlike other top roles with

a permanent vote on policy,

the New York Fed boss

is nominated by the regional

bank’s board of directors rather

than the White House and

does not require Congressional approval.


Dudley’s successor could play an

even greater role guiding the

Fed through a historic leadership

change in which U.S. President

Donald Trump can fill six

of the seven seats on

the Fed Board of Governors.

He has so far named

Jerome Powell and Randal Quarles

- lawyers, not PhD economists

- to top positions in

Washington, with Powell replacing Chair

Janet Yellen who unlike her

predecessors will only serve one

term.


Both men support the Republican

push for Wall Street deregulation.

Yet their limited experience with

monetary policy has raised questions

over who will guide the

Fed’s tightening plans and over

how prepared it will be

to tackle any severe economic

downturn. The New York Fed

under then-president Timothy Geithner played

a critical role in U.S.

efforts to contain the financial

crisis in 2008.


By now the New York

Fed directors have kept it

open what an ideal candidate

profile should look like, according

to people familiar with the

search. Two of those people,

who declined to be named

given the sensitivity of the

process, said search firms have

contacted among several others Peter

Blair Henry, 48, dean of

New York University’s Stern School

of Business, and former Fed

governor Kevin Warsh,


Warsh, 47, who was in

the running for Fed Chair

before Trump picked Powell last

month, declined to be considered

for the New York job,

they said. One of these

people said Henry appeared to

be the early front-runner.


Henry and a spokeswoman for

Warsh at Stanford University’s Hoover

Institution, where he is a

visiting fellow, did not respond

to requests for comment.


WASHINGTON’S COUNTERBALANCE
The permanent-voting Fed governors need

a White House nod and

Senate approval. The other 11

district presidents vote every two

or three years under a

century-old rotation meant to emphasize

New York’s unique role as

a counterbalance to the Washington-based

board. Its president enjoys broad

independence and also serves as

vice chair of the central

bank’s rate-setting committee. (For a

graphic of the Fed’s ideological

doves and hawks, see: https://goo.gl/5BpTex)


’’It’s a critical pos
#Exclusive: #Contenders #emerge #for #No.2 #Fed #job, #search #to #narrow #Exclusive:ContendersemergeforNo.2Fedjob,searchtonarrow