Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Report: Mohamed El-Erian Could Be Heading to the Fed
The Trump administration is weighing Mohamed El-Erian for the vice chairman post at the Federal Reserve, where the former Pimco CEO would replace Stanley Fischer, who left the position in October, CNBC reports.
El-Erian, who is currently the chief economic advisor at Allianz, would be the presumptive second-in-command to Jerome Powell, who President Trump nominated to succeed Janet Yellen as Federal Reserve chair when her term expires in February. Powell still needs to be confirmed by the Senate.
In addition to the El-Erian appointment, the White House is considering the nomination of Michelle Bowman, a Kansas banking regulator, for another Fed governor appointment, according to Dow Jones. The report said the administration is looking for someone with monetary policy experience to guide the central bank forward.
Trump has three openings current on the seven-member Fed board of governors — four if Yellen decides not to stay on after her chair term expires. On top of those vacancies, the critical New York Fed president’s position also is open. However, that seat is filled internally.
El-Erian, as CNBC notes, is perhaps best known for coining the phrase the “new normal” while he was at Pimco. Although, one could argue that his phrase is probably now more well-known than he is – at least outside of investment circles.
Dow Jones was the first to report the White House’s interest in El-Erian.
Photo: Fortune Live Media