White House considering at least six for Federal chair

Bloomberg

The White House is considering more than a half-dozen candidates to be the next head of the Federal Reserve, including economists and business people, with a goal of filling out a depleted board with expertise ranging from financial regulation to community banking, according to three people familiar with the matter.
The breadth of the search goes against the narrative that has taken hold in Washington and on Wall Street that the Fed chair nomination is a two-horse race between National Economic Council Director Gary Cohn and current Fed Chair Janet Yellen, whose term expires
in February.
Some of the possible contenders include former Fed Governor Kevin Warsh, Columbia University economist Glenn Hubbard and Stanford University professor John Taylor, one of the people familiar said. Lawrence Lindsey, a former economic adviser to President George W. Bush, has been discussed. Former US Bancorp CEO Richard Davis and John Allison, the former CEO of BB&T Corp., have been considered.
President Donald Trump said in July that both Yellen and Cohn, a former Goldman Sachs Group Inc. president, were being considered for the top Fed job. Since then, Cohn’s prospects have grown cloudy after he publicly criticised remarks the president made in the wake of racially charged violence in Charlottesville, Virginia. The Wall Street Journal reported that Trump is unlikely to pick Cohn for the post, and three people close to Trump told Bloomberg that Cohn’s prospects for the Fed job have dimmed.
But three people familiar with the process say Trump is not yet deeply focused on the search. It is still being conducted by staff who aren’t ready yet to present him with a short-list of vetted candidates. John DeStefano, the president’s chief personnel recruiter, is in charge of the search, one person said. Trump’s former chief strategist Steve Bannon, who clashed with the more moderate Cohn inside the White House before his departure last month, told 60 Minutes in an interview that Cohn should “absolutely” resign.
Having credible leaders at the top of the central bank is critical for financial market stability.
The nominations of Quarles and Goodfriend show that the White House is also striving for diversity of professional experience, skills and geographic representation on the Fed Board, as required by law.
For now, investors are showing patience with the process as Yellen serves out her term.

One nomination advanced by Senate panel
Bloomberg

The Senate Banking Committee voted to advance the nominations of Randal Quarles to serve as the Federal Reserve’s vice chairman for supervision and Joseph Otting to be Comptroller of the Currency, taking key steps toward President Donald Trump’s goal of reshaping regulation of Wall Street.
If confirmed by the full Senate, Quarles and Otting will be the two most powerful US banking regulators, poised to play leading roles in efforts to roll back post-crisis rules that Trump administration officials have said are stunting economic growth.
The two will have extensive influence over bank capital and liquidity, and the enforcement of regulations such as the Volcker Rule, which restricts lenders from investing with their own money. In his role as a Fed governor, Quarles would also play a role in shaping monetary policy.
In addition to unanimous Republican support, Quarles was backed by Democrats Mark Warner of Virginia, Heidi Heitkamp of North Dakota, Joe Donnelly of Indiana, John Tester of Montana and Chris Van Hollen of Maryland. Heitkamp also voted for Otting.
Quarles would fill one of four openings on the seven-member Fed board.