Lawrence Lindsey Withdraws From Consideration for No. 2 Fed Post

02/05/18 01:16 PM EST
By Nick Timiraos and Peter Nicholas 

Republican economist Lawrence Lindsey has withdrawn from consideration for the post of Federal Reserve vice chairman.

The White House has considered several candidates for the job, though the timing of a decision remains in flux.

Those under consideration include Richard Clarida, a managing director at money manager Pimco, who has met with top officials at the White House and Treasury Department. He also has met with new Fed Chairman Jerome Powell, who was sworn in Monday.

White House officials also have met with San Francisco Fed President John Williams, though he isn't considered a front-runner, and Mohamed El-Erian, the former chief executive of Pimco.

Mr. Lindsey is a former Fed official who later served as a top economic adviser to President George W. Bush. Mr. Lindsey, who now runs an economic advisory firm, served as an informal adviser to the Trump campaign in 2016.

In a note to his clients Sunday night, Mr. Lindsey said he asked the White House to withdraw his name from consideration after he concluded that several personal obligations made it impossible for him to serve.

"As one of the nation's leading economic policy experts, Dr. Lindsey has been a valuable resource to the administration. We wish him the best in his future endeavors," White House spokeswoman Lindsay Walters said in a statement.

Mr. Lindsey didn't respond to a request for comment Monday.

The process of selecting the central bank's No. 2 official has taken on greater urgency because the Fed's seven-member board of governors is down to just three members.

Former Fed Chairwoman Janet Yellen resigned her seat as a governor after being succeeded by Mr. Powell.

Mr. Powell is the first noneconomist to lead the central bank in three decades, and the White House has been looking to select someone who would provide heft in economic debates. This could give the vice chairman more influence than was the case under Ms. Yellen or her predecessors Ben Bernanke and Alan Greenspan.

The vice chairman position has been vacant since October, when Stanley Fischer resigned for personal reasons. His term was set to expire this June.

The White House has nominated economist Marvin Goodfriend to fill one of the Fed board vacancies.

Write to Nick Timiraos at nick.timiraos@wsj.com and Peter Nicholas at peter.nicholas@wsj.com

 

(END) Dow Jones Newswires

February 05, 2018 13:16 ET (18:16 GMT)

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