Mohamed El-Erian in race for Fed Vice Chair: CNBC

The chief economic adviser at Allianz would hold the second highest position at the Fed, potentially behind chairman nominee Jerome Powell

Nov 14, 2017 @ 5:05 pm

By InvestmentNews

The White House is considering bond guru Mohamed El-Erian for the vice chairmanship of the Federal Reserve, according to a report by CNBC.

Currently chief economic adviser at Allianz and former CEO of its fixed-income powerhouse Pimco, Mr. El-Erian also served as deputy director at the International Monetary Fund and would take the seat vacated in October by Stanley Fischer.

If selected, he would hold the second highest position at the Fed, potentially behind Jerome Powell, who awaits Senate confirmation to succeed Janet Yellen as chairman when her term expires in February.

On Nov. 2, Bloomberg News published an opinion piece by Mr. El-Erian praising Mr. Powell as a pick that would provide "a sense of continuity and predictability that is beneficial for the successful maintenance of the 'beautiful normalization' process that has allowed the Fed to gently and gradually step back from unconventional monetary policies without destabilizing markets or derailing the pickup in U.S. and synchronized global growth."

The search process has just begun and the vice chair announcement is not likely this year, said a CNBC source.

Other candidates for the vice chair job that "might plausibly be considered" include Glenn Hubbard, the Columbia Business School dean, and current San Francisco Fed President John Williams, according to Krishna Guha, head of global policy and central bank strategy at Evercore ISI.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Schwab's Clark: How next-gen can position themselves for success

How can the next generation position themselves for success in the industry? Our student correspondent from Texas Tech, speaks with Bernie Clark to find out.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print