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Home>UPDATE: Why a super dove could end up leading a Trumpian Fed

UPDATE: Why a super dove could end up leading a Trumpian Fed

UPDATE: Why a super dove could end up leading a Trumpian Fed

10/04/2017

By Barbara Kollmeyer, MarketWatch

Critical information for the U.S. trading day

POTUS could pick a new Fed chief within two or three weeks, one that just might rock the market's world. Or not.

Citing people in the know, Bloomberg says (https://www.bloomberg.com/news/articles/2017-10-04/trump-aides-are-said-to-deliver-shortlist-of-fed-candidates) President Donald Trump's advisers have given him a short list of contenders: Janet Yellen, though she doesn't seem to be a huge favorite, top Trump economic consigliere Gary Cohn, former Fed board governor Kevin Warsh and current governor Jerome Powell. Stanford economist John Taylor is on that list too.

Dollar bulls got excited recently about the prospect of a hawkish Warsh in the top seat. But some view Warsh as a weird pick (http://www.marketwatch.com/story/warsh-would-be-strange-pick-as-fed-chair-for-a-president-who-says-he-cares-about-jobs-2017-10-03), and fresh chatter about not-so-hawkish Powell being a contender helped take some shine off the dollar :

Our call of the day, says forget these picks as a long-shot might get the nod.

"I think I'm the only guy on God's green earth that believes it will be Neel Kashkari," said Jeff Gundlach on his guess as he chatted at the Vanity Fair New Establishment Summit yesterday in LA.

"He happens to be the most easy-money guy that's in the Federal Reserve system today, and that's why he may win," the DoubleLine Capital guru added. He pointed to the Minneapolis Fed president recently saying the central bank should cool it on rate hikes (kashkari).

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