President Donald Trump is reportedly considering Allianz chief economic advisor and ex-Pimco CEO Mohamed El-Erian for Fed board governor.
The news has been reported by Dow Jones/WSJ and CNBC, each citing a single anonymous source.
El-Erian has plenty of financial sector experience and monetary policy knowledge but could be criticized for being a creature of Wall Street.
President Donald Trump’s economic team is reportedly considering Allianz economist and former CEO of bond fund giant Pimco Mohamed El-Erian for one of four open seats on the Federal Reserve’s powerful Washington-based board of governors.
The news was first reported by Dow Jones Newswires, which is part of The Wall Street Journal. They cited a source familiar with the matter. CNBC has also reported El-Erian as a possibility, also citing an anonymous source.
While El-Erian would bring plenty of financial sector experience and monetary policy knowledge to the Fed, he would likely face criticism about the revolving door between financial sector executives and the central bank.
Trump announced earlier this month he was not reappointing Janet Yellen to a second term as Fed chair, but would instead replace her with central bank governor Jerome Powell. Powell himself hails from the financial sector, having spent much of his career at the private equity firm Carlyle Group.
The Fed board’s governors are not only in charge of setting interest rates as permanent members of the Federal Open Market Committee, but also play a major role in financial regulation, particularly the oversight of large Wall Street banks.
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Source:: Business Insider