, Columnist
The Fed Needs a Savvy Politician as Its Chair
In these polarized times, leadership is more important than monetary policy chops.
Moving trucks coming?
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Word is that President Donald Trump has settled on a shortlist of candidates to serve as the next chair of the Federal Reserve. How should the final choice be made? I recommend nominating a candidate who can lead the Fed through what are likely to be politically turbulent times.
We do not live under political normalcy, so traditional standards are not enough to guide this choice. In an age of consensus, it might be wise to nominate the candidate who knows the most about monetary policy, or who commands the most respect on Wall Street. Those remain significant factors, but the most important job of the next candidate is to prevent a polarization of opinion within the Fed itself.