On the short list for the next fed vice chairman are John Williams and Larry Lindsey. The next vice chairman could be influential in policy making since Jerome Powell is not an economist.
John Williams is your typical Keynesian inflationist. He thinks the fed 2% inflation target is too low. He has no problem with negative rates. He is definitely a “dove”.
Larry Lindsey is an odd pick. William McChesney Martin once said the job of the fed is, “to take away the punch bowl just as the party gets going.” Larry Lindsey subscribes to this view. In other words, he is a bubble popper. He is on record saying the fed is behind the curve in raising rates. His mentor is Marty Feldstein, arguable the sanest main stream economist. On a side note, I do enjoy Feldstein’s analysis.
Looking back at the FOMC transcripts from the 90’s, Larry Lindsey was one of the few voices of reason. Alan Greenspan’s ignorance in these transcripts is astonishing.
It is hard to believe Larry Lindsey will get the nomination giving his views. Additionally, Larry Lindsey is the most boring speaker alive.
CAUTION: DO NOT LISTEN TO HIM AND OPERATE HEAVY MACHINERY
I do not see how Lindsey will keep Trump’s attention or impress him. John Williams is a fast in your face talker. Since Trump is a wild card, to say the least, we really do not know. It will be interesting to see who Trump fills this spot and the other vacant spots on the fed board.
I also find it interesting the top picks have totally different views about what the fed should do from here. I am guessing the administration does not know what to do either. Why not hear out both views and decided on the fly?