Homepage / Currency / Contenders emerge for the No. 2 Fed job as search narrows
How technology is helping transform BMW's business model French leader Macron meets May in first official visit to the UK Nintendo is betting on cardboard to boost its newest console Europe stocks seen slightly higher after Wall Street rally Google and Singapore's Temasek are said to be investing in a ride-hailing unicorn Old hands in South Korea bitcoin market unfazed by threats of ban Tillerson says Russia is not implementing all North Korea sanctions, may be frustrating some steps 2017 marked a turning point for capital flows, China currency regulator says Facebook attacked by critics over 'fake news' — but outside the US this time Instagram users are promoting economic policy for pay China is revealing its 2017 GDP. Here's what analysts expect Exercise? I get more than people think, Trump says iOS update will let users decide if they want Apple to slow down older iPhones or not, Tim Cook says South Korea is considering shutting down all virtual currency exchanges, regulator says Cramer Remix: The real ‘wild card’ behind soaring retail revenues Asian shares look set to track US gains; China data ahead Cramer: Apple's Tim Cook credits most of $350 billion plan to repatriation tax holiday Apple is giving $2,500 stock awards to some employees Fashion is getting personal as brands battle for shoppers Google is missing out on billions of dollars by not having an app store in China Steve Ballmer deserves his due as a great CEO Early reviews heap praise on Tesla's Model 3, with a few caveats Apple will boost its spending on data centers by $10 billion over the next 5 years Stock market's rapid January rise already surpassing some full-year forecasts on Wall Street Ripple co-founder loses $44 billion on paper during cryptocurrency crash SurveyMonkey is expected to go public later this year Stocks will pull back into February, says BTIG. Here's where to hide out Bitcoin tests important price level after dramatic plunge Visa CEO: We won't process transactions in bitcoin, because it's not a payment system Apple plans to open a second US campus as part of $350 billion investment It looks like Apple is bringing back home nearly all of its $250 billion in foreign cash Johnson & Johnson trying to sell its diabetes care business to Chinese buyers for up to $4 billion Coming to a grocery store near you: Self-driving shopping carts and smart shelves Apple announces plans to repatriate billions in overseas cash, says it will 'contribute' $350 billion to the economy over 5 years Bull market may find it hard to keep this momentum, but that doesn't mean it's over Apple could cure tech addiction with a few simple changes to the iPhone Cryptocurrencies will replace 'some or all' paper money, investor James Altucher says Apple and two others could propel the Dow to 27,000 Ex-Cisco CEO John Chambers has a new venture capital firm Rare falling meteor causes bright and loud explosion above Michigan The bitcoin plunge is crushing crypto-craze stocks Dollar will eventually run like bitcoin and other cryptocurrencies, venture capitalist Joyce Kim predicts Billionaire Mark Cuban says the Dallas Mavericks will accept bitcoin next season GE shares crater as breakup won't be a magic bullet for investors Cramer: Investors should heed Bank of America's warning on bitcoin Zuckerberg: Unresolved DACA status is a 'basic question of whether our government works' Facebook, Google tell Congress they're fighting extremist content with counterpropaganda Watch: Facebook, Google and Twitter testify before Congress on extremist content Netflix to beat subscriber expectations for fourth quarter, analyst predicts Day traders tempted by bitcoin's recent plunge are going to 'get slaughtered,' says blockchain entrepreneur Home builder confidence falls from 18-year high, but it's still strong International tourism is booming, but not to the US Rolls-Royce shares jump as commercial marine unit goes on the block Stocks are now in 'complete bitcoin territory,' asset manager says 6 big medical advancements to expect in 2018 The market may still be rosy, but advisors say investors shouldn't get complacent. 21 states sue to keep net neutrality as Senate Democrats reach 50 votes for repeal Google wants to make A.I. easier to use, starting with image recognition IBM shares jump 2% after Barclays upgrade: 'The worst may finally be over' Crude could get to $74 this year, but not before a pullback, says the trader who called the rally Stocks making the biggest moves premarket: GS, BAC, TIF, AAPL, INTC, F & more Apple gets one of its most bullish forecasts yet after Bank of America predicts surge to $1.1 trillion Why the dollar's decline could be here to stay Bitcoin drops below $10,000 with $36 billion of value wiped off in a day as cryptocurrency sell-off deepens Apple gets rare downgrade because analyst believes iPhone cycle is just 'good, not great' As the first bitcoin futures expire, price and volume concerns arise The island paradise that could be China's next strategic transport hub North Korea government-backed hackers are trying to steal cryptocurrency from South Korean users A government shutdown could send investors for a ride, history shows The rise and fall of Bitcoin If your Wi-Fi is acting wonky, your Google Home and Chromecast could be to blame Data analysis is transforming the way trains operate: Here's how World entering 'critical period of intensified risks' in 2018, WEF says German central bank chief says it would be 'appropriate' for ECB to stop its bond buying this year Over $200 billion wiped off the value of cryptocurrencies as bitcoin, ethereum and ripple sink sharply European stocks set to open lower ahead of earnings and inflation data 'Trump is a revolution, unfortunately, and I'm concerned,' Nobel Prize-winner Robert Shiller says Immigration deal distant as leaders try to avert shutdown 20 nations commit to considering more sanctions on North Korea Hong Kong democracy leader Joshua Wong jailed a second time for 2014 protest China sets yuan midpoint at more than 2 year high Only one major cryptocurrency is gaining amid a market-wide sell-off 'Black swan' event could threaten China's stability, regulator warns US Senate advances bill to renew NSA's internet surveillance program Bitcoin and ethereum suffered massive drops, but many cryptocurrencies are faring even worse Cramer Remix: The prospect of stock buybacks should calm fears of a major market decline Cramer's charts suggest Amazon, Alphabet, Netflix and Nvidia's stocks might be about to pull back Asian stocks poised for declines following Wall Street reversal; bitcoin stumbles YouTube is trying to clean itself up by making it much harder for small video makers to make money Cramer reveals the biggest winners and losers from the JP Morgan Healthcare Conference Cramer's 5 cardinal rules of engagement with the bull market Amplify ETFs CEO thinks blockchain will transform investment leaders Travis Kalanick discussed compensating the driver he berated in that viral video Dunkin' debuts a mobile order drive-thru at its new concept store Ethereum crashes 30 percent on Coinbase in 24 hours; Bitcoin tumbles 25 percent Ferrari plans an electric supercar that would compete with Tesla Intel, AMD draw scrutiny from Congress over chip security flaws Initial coin offerings are the 'Wild West' of start-up land — here's how one investor spots a scam Ripple tumbles more than 40 percent to start 2018 Consumer privacy laws are not to blame for health care's biggest mess

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.