Homepage / Currency / Contenders emerge for the No. 2 Fed job as search narrows
The flip phone is about to make a big comeback as foldable screen nears reality Here is what a student could have made if they invested their 2014 summer earnings in FANG stocks VW names interim Audi boss, seeking to steady brand after its CEO's arrest Here’s the fundamental error in Trump’s trade strategy Chip stocks dive on trade war fears as industry gets a majority of its revenue from China New home construction booms to a near 11-year high in May A dangerous dot-com era phenomenon is back and it's going to inflict pain, Jim Paulsen warns Netflix gets a $500 price target, the highest on Wall Street Apple is the big tech firm most at risk from a US-China trade war AT&T promises fewer ads, tailored programming after merger with Time Warner Stocks making the biggest moves premarket: VZ, TSLA, AAPL, WFC, T, SIRI & more Billionaire Howard Marks: Computers won't put the best human investors out of business CVS introduces prescription drug delivery as it braces for Amazon's possible entry Former turnaround exec Bozoma Saint John: Uber was 'the poster child for everything gone wrong' Trump told Tim Cook that US would not place tariffs on iPhones, but Apple's still worried Amazon's Alexa will now be your butler at Marriott hotels Billionaire investor Jim Mellon: Sharp sell-off in US stocks is the start of a 'very major correction' South Africa will avoid a ‘knee-jerk’ reaction to currency weakness, central bank deputy says Dow futures tumble as China responds to latest Trump threat North Korea's Kim visits Beijing as South Korea and the US halt military drills 'Belligerent' US trade stance could hurt America's iconic companies the most, Jim O'Neill says Irish central banker says it's too early for the ECB to discuss future rate hikes All global currencies will become cryptocurrencies, Circle CEO says Abu Dhabi Financial Group unit offers to buy Abraaj's investment management arm Beijing subways could get facial recognition and palm scanning tech, Chinese media reports Roche agrees to pay $2.4 billion to buy the rest of Foundation Medicine Japanese e-commerce company Mercari surges more than 70% in Tokyo debut European markets seen sharply lower as Trump threatens new tariffs China's central bank delivers surprise stimulus as trade spat with US worsens Shares of China's ZTE sink 23% after US Senate targets company in new bill Has a US-China trade war begun? Experts weigh in North Korean leader Kim Jong Un is in China on a two-day visit: Chinese state media China pledges it will fight back firmly if Trump goes ahead and publishes list of additional tariffs Trump reportedly told Apple's Tim Cook that iPhones will be spared from China tariffs Smartphone maker Xiaomi to postpone mainland China listing until after Hong Kong IPO Asian shares poised to edge higher despite trade jitters; oil prices rise Senate passes military funding bill that would reimpose sanctions on Chinese telecom ZTE Cramer Remix: Tariff headlines have investors flocking to these stocks Cramer's warning on recent tech IPOs: Be careful with their sky-high valuations Elon Musk sends company email about 'extensive and damaging sabotage' by employee Elon Musk sent an email to Tesla employees about another fire in its factory on Sunday Microsoft condemns 'forcible separation' of children from families after criticism of work with ICE Snap CEO Evan Spiegel says even his wife, Miranda Kerr, hated the app’s redesign UBS CEO: Blockchain technology almost a must have for business Bitcoin jumps after New York approves Square's Cash app for crypto trading Apple is worried about Chinese tariff retaliation that could hamstring its supply chain Elon Musk tells shorts on Twitter they have 3 weeks to cover Watch these drones string power lines along poles high above the ground SurveyMonkey confidentially files for IPO President Trump signs space junk directive aimed at cleaning up the cosmos Dropbox rises more than 8% adding to last week's gains President Trump directs Defense Department to 'immediately begin the process' of establishing 'Space Force' as sixth military branch Elon Musk hung out in the Netscape lobby in the '90s hoping to get a job Square gets regulatory green light for cryptocurrency trading in New York Domo drops below billion-dollar valuation in lead-up to IPO Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt With Twitch, Amazon tightens its grip on live streams of video games This fitness app wants you to have a personal trainer in your pocket Intel shares fall after small Wall Street firm downgrades chipmaker, predicting slower growth Rent-A-Center shares surge 22% in single day on buyout Snap CEO Evan Spiegel on Facebook imitations: 'The innovators win in the long run' Amazon to add over 1,000 jobs in Ireland in country's biggest staff boost this year Supreme Court mulls Apple's App Store commissions in antitrust case JP Morgan says buy Micron into earnings due to ‘robust’ cloud computing spending Germany's Merkel given two weeks to reach EU deal on migrants Disney is expected to add cash to its bid for Twenty-First Century Fox assets: Sources How to play rising interest rates based on your age Microsoft acquires education start-up Flipgrid in latest challenge to Google BJ's Wholesale expects its IPO to price at $15 to $17 a share Don't even think about investing without a diversification strategy: Advisor Boeing sell-off looks like the beginning of a correction, technical analyst says Mass facial recognition boom led by the Chinese government will mean big money for Nvidia, UBS says Goldman Sachs still sees oil rallying over $80 despite market concerns over key OPEC meeting Disney shares downgraded to sell on concern the battle for Fox has placed company in an unwinnable situation Chipmaker Mellanox nears truce with activist investor Starboard over board seats Rates are on the rise, but don’t fear for the stock market — yet We’re seeing the greatest asset inflation bubble in 20 years, fund manager warns Apple will automatically share a user's location with emergency services when they call 911 Investors still love equities but ‘market fragility’ could be ahead in the second half of 2018 Munich prosecutors say Audi CEO arrested on risk he may suppress evidence Lufthansa in contact with Norwegian Air, CEO says Martin Sorrell's reign over the ad industry 'has not been that glorious' Immigration fight has handed Germany’s Merkel her ‘worst crisis’ in more than a decade British bank CYBG clinches $2.3 billion takeover of Virgin Money European markets seen lower as China-U.S. trade tensions intensify Magnitude 6.1 earthquake kills three people, shutters factories in Japan's Osaka Google places a $550 million bet on China's second-largest e-commerce player Chinese tech CEO: A trade war would hurt 'a lot of American brands' Top VC news: Adyen goes public, Toyota investing $1 billion in ride-hailing giant Grab Japan exports accelerate in May, trade protectionism remains a risk Asian shares poised to slip after escalation in US-China trade tensions Ford plans to revive long-vacant Michigan Central station as hub for its self-driving cars Apple's new iPhone software lets you create an animated version of yourself — here's how it works Veteran tech investor sees record tech rally failing, turns to financials Amazon's Whole Foods deal has sent some retailers into the arms of Google Drone giant DJI is building a new headquarters as a 'floating community' with a giant sky bridge Greek PM Alexis Tsipras survives no-confidence vote in parliament UK national health service to get $26.5 billion boost post-Brexit, PM Theresa May says Just the fear of a trade war is straining the global economy Elon Musk tells Tesla employees that 'radical improvements' are needed to hit quarterly targets

Currency

Contenders emerge for the No. 2 Fed job as search narrows

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 relatively limited experience with monetary policy compared with their predecessors has raised questions over the Fed’s tightening plans and how it might tackle any severe economic downturn.

By now the New York Fed directors have kept 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.

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.

“It’s a critical position and more important than the Fed’s vice chair from a market standpoint,” Greg Peters, senior investment officer of Prudential Fixed Income, which oversees $695 billion in assets, told Reuters.

Still, the Fed’s Board of Governors would need to approve the nominee chosen by New York’s four-member search committee led by liberal-leaning directors Sara Horowitz and Glenn Hutchins. Horowitz, founder of the Freelancers Union which advocates for independent workers, chairs the New York Fed’s board. Hutchins is co-founder of private-equity firm Silver Lake Partners and a noted public-policy philanthropist.

Several weeks before Dudley’s resignation announcement in early November, the two were already hitting the phones and holding meetings to cast a wide net for potential candidates diverse primarily in terms of professional background, but also race and gender, according to those familiar with the effort.

The New York Fed declined to comment. In a video posted on its website last month, the search committee said they sought a range of attributes from team-building and sensitivity to local economic trends, to intellectual leadership and crisis management.

The initial search effort suggests the next New York Fed chief could have a different background than Dudley and his predecessors, who tended to be bankers or market economists with Wall Street or U.S. Treasury experience, and who were all white and male.

Dudley was chief economist at Goldman Sachs before joining the Fed where he became a key architect of its crisis response and later the No. 2 policymaker behind Yellen.

At the time of his departure, the New York Fed will have only begun the tricky task of trimming its currently $4.4-trillion portfolio of assets accumulated since the crisis, a task that would favor candidates with market experience.

Jamaica-born Henry, who will step down as Stern’s dean at year end, would instead bring his expertise in global trade and shore up the number of economists in the Fed’s upper ranks.

A review of Henry’s public papers and comments reveal little about his views on U.S. monetary policy or financial supervision, though his expertise in capital flows could bolster the New York Fed’s role as foreign liaison. If chosen he would become the institution’s first black president.

Those who have spoken to New York Fed directors said past and present insiders, as well as outsiders, were considered. Among them were: Simon Potter, the head of the New York Fed’s markets desk; Brian Sack, his predecessor in that role now at hedge fund D.E. Shaw; and Lorie Logan, Potter’s deputy.

They said the field also included Lael Brainard, one of four sitting Fed governors; former Fed governor and Harvard professor Jeremy Stein; and Mohamed El-Erian, the chief economic adviser at Pimco-parent Allianz SE.

All of those named declined to comment. It was unclear how much formal contact if any they have had with the New York Fed about the job. The bank has said the process should take six to nine months.

Source: cnbc economy
Contenders emerge for the No. 2 Fed job as search narrows

Comments are closed.