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

I am a professional woman, not a woman professional.

How Bella Allaire's upbringing in the Soviet Union actually helped her rise to the top, and her wish for women everywhere.

Latest news & opinion

CFA Institute adding crypto, blockchain to curriculum

Subjects will be added to its Level I and II coursework for the first time next year.

Trump tax plan making dividend ETFs hot

Funds that are seeing inflows largely steer clear of sectors like utilities.

Wells Fargo Advisors continues to see a decline in brokers

Company also set aside $114 million over fees for rich clients.

Morningstar to replace funds in its managed portfolios with nine of its own

New sub-advised funds, offered exclusively through financial advisers, are intended to lower costs and provide 'greater flexibility.'

Average client assets top $2 million for first time

Charles Schwab's latest RIA Benchmarking Study reports organic growth is driving increased AUM and revenues.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print