The next Fed Chair will set the tone for the Federal Reserve Bank for the coming years. We will discuss the possible implications of each of US President Trump’s suspected picks, as he is expected to make his selection in the afternoon on Thursday, November 2.

Janet Yellen (Current Fed Chair, ‘Neutral’)

– Yellen took office as Chair of the Board of Governors in 2014 was nominated by former President Barack Obama. – Unlike Kevin Warsh, Yellen has a formal background in economics.

– Overall, Yellen is cautious and has repeatedly stated that hiking rates is only appropriate with the presence of material economic growth.

– If Janet Yellen were to be the next Fed Chair, we can expect the Fed to continue along its current path of monetary policy.

Jerome Powell (Current Fed Board Member, ‘Neutral’)

– Powell took office as a member of the Board of Governors in 2012. Like Yellen, Powell was appointed to office under former President Obama’s nomination.

– In June, Powell stated, “I would view is as appropriate to continue to gradually raise rates.” He has voted with Yellen on nearly every occasion since she became Fed Chair in 2014.

– Powell also supports gradually shrinking the balance sheet and only making new asset purchases in “extraordinary circumstances.”

– One of the frequently highlighted differences between Powell and Yellen is the former’s favor of deregulation in the financial markets

– Overall, Powell as the next Fed Chair would closely mirror the Fed’s stance under Janet Yellen.

Kevin Warsh (Former Fed Board Member, ‘Hawkish’)

– Warsh is a former member of the Board of Governors who served from 2006 to 2011 and was appointed by former president George W. Bush.

– Notably, Warsh has a formal background in law, not economics. Prior to joining the Fed, he worked as a lawyer on mergers and acquisitions.

– Overall, he has taken a deregulatory stance in effort to ease the conditions of doing business for financial institutions.