The debate internally at the White House in the musty recesses where such things are discussed is whether Yellen stays on or if a new Fed Chair will be appointed.
The Trump White House wants someone who isn’t too hip on raising rates, as Trump the real estate guy probably doesn’t want that for a myriad of reasons, but someone who will signal a break from the current Fed epoch nonetheless.
Neel “I ran the Troubled Asset Relief Program – one of the cronyist things this country has ever done” Kashkari would seem like a break while giving the bankers the total and likely final all clear on the bailouts. If a Goldman alum takes the Fed chair, there will never be any justice on the bailout front. (We’ll never forget.)
Granted, there won’t be any justice anyway but Kashkari will seal the vault. So to speak.
Kashkari is young and might be the “fresh face” Goldma…er …Trump is looking for. We’ll see. He just popped up on the radar screen but he has a history of coming out of nowhere. Perhaps Gary Cohn (who is a Democrat by the way) just failed a vetting or something.
Yesterday, DoubleLine’s Jeff Gundlach, who correctly predicted the election of Donald Trump, unveiled a new surprise forecast: Neel Kashkari would be the next chairman of the Federal Reserve. Speaking Tuesday at a Vanity Fair summit in Los Angeles, Gundlach said Kashkari, president of the Minneapolis Fed, was a strong advocate of easy money. He was envisioning Kashkari’s latest essay from Monday, in which the former Goldmanite uber dove, who was instrumental in putting together the TARP bank rescue package, said the Fed shouldn’t raise interest rates again until inflation hits 2% or there’s a large drop in unemployment.
“I actually have a very non-consensus point of view. I think it’s going to be Neel Kashkari,” Gundlach said, adding that “he happens to be the most easy money guy that’s in the Federal Reserve system today and that’s why he may win.”