'Chairman Cohn' Has a Nice Ring to ItIssue 08-07-17 |
The Federal Reserve Bank plays a critical independent (non-partisan) role in helping manage economic policy—especially setting interest rates. The staff of the Fed includes around 300 Ph.D. economists who pore over research reports and economic indicators to try and understand how the economy is performing. The term of
The term of the current head of the Federal Reserve, Janet Yellen, will be up in 2018. At this point, it is unclear whether President Trump will suggest she be re-appointed for another term, or if he will choose someone else.
One of the leading contenders is Gary Cohn, currently Trump's chief economic advisor. Cohn is known as being blunt, tenacious, loyal, and an instinctual decision-maker. In contrast, the organizational culture of the Federal Reserve is viewed as slow-moving, careful, thoughtful, contemplative, colloaborative, and research-driven. How, as a leader, he would adapt to that culture, or how the organization might adapt to him, is unclear. His penchant for making off-the-cuff remarks could also cause traders (and hence markets) to react in unpredicable ways.