Reports Indicate That Two Candidates Are Leading The Race For Fed Vice Chair‍

The Federal Reserve is reported to be considering the nomination of two candidates for the position of vice chair.

‍

The White House is considering Harvard University professor Karen Dynan and Northwestern University professor Janice Eberly for the position, according to Trade Algo Thursday (Feb. 23).

‍

Moreover, the Chicago Fed President Austan Goolsbee, the San Francisco Fed President Mary Daly, and Morgan Stanley's Chief Global Economist Seth Carpenter are also in contention, according to the report, which cited unnamed sources.

‍

According to the report, other potential nominees may also be under consideration, but talks are still underway, and it has not yet been decided who will be nominated, the report stated.

‍

However, at the same time, the White House intends to finish the process within a few weeks, if all goes well.

‍

The nomination for the position from the White House will still have to be confirmed by the Senate before it can become effective.

‍

According to a report released by Trade Algo on the 15th of February, Dynan, Eberly, and Goolsbee could all be candidates for the vice chairman position.

‍

The report stated that Lisa Cook, the governor of the Fed, and Susan Collins, the president of the Boston Federal Reserve, were also contenders for the position.

‍

Trade Algo reported that President Joe Biden didn't make a final decision on the nominee and that it is possible that he will not announce his decision for weeks to come.

‍

As part of this nomination process, Biden also announced that on Feb. 14, he had named Lael Brainard, the then Vice Chair of the Federal Reserve, as the director of the National Economic Council (NEC).

‍

“He understands how the economy affects everyday people, [Brainard] is a trusted veteran across our economic institutions,” Biden noted when announcing Brainard's appointment.

‍

The Federal Reserve History website notes that Brainard became a member of the Board of Governors of the Federal Reserve System in June 2014 and that she will become vice chair in 2022.

‍

Following her appointment as a member of the NEC, she resigned from her position as a member.

‍

According to the Trade Algo report from February 14th, Brainard has been one of the Fed's most "dovish" members, as she signals that the central bank may be able to lower inflation without causing extensive harm to the labor market.

‍

Taking over Brainard's previous position at the NEC, Brian Deese, who said in early February that he would be leaving the position, according to the Trade Algo report, is succeeding Brainard in her new position.

‍