Sep 7, 2017

The choices for Fed chair

Kevin Warsh in London in 2014 (AP)

Possible nominees to top Fed posts, per the Wall Street Journal, "include former governors Lawrence Lindsey and Kevin Warsh, former BB&T Bank chief executive John Allison, and Stanford University economist John Taylor."

  • The front-page article is headlined "Cohn Now Seen as Unlikely Pick to Be Fed Chairman," which the Journal says is largely because of Cohn's public criticism of Trump's response to Charlottesville.
  • What's new: "Fed Vice Chairman Stanley Fischer said Wednesday he will resign in mid-October for personal reasons, adding another vacancy to the three others on the powerful seven-member Fed board of governors."
  • Why it matters: "His departure accelerates Mr. Trump's opportunity to put his stamp on the central bank."

Scenarios: "The White House has been considering nominating Marvin Goodfriend, a former research director at the Richmond Fed who is a professor at Carnegie Mellon University, to the Fed's board.""One possibility would be to nominate an incoming board member, such as Mr. Goodfriend, or a current board member, such as Fed governor Jerome Powell, to the vice-chair post."

Be smart: Since Cohn criticized Trump in a Financial Times article, White House insiders have been telling us the favorite for Fed chair is Kevin Warsh, an economic official in the George W. Bush White House, and member of the Fed board from 2006 until 2011.

Worthy of your time: Greg Ip column in Wall Street Journal, "Comfortably numb ... Why the U.S. Economy Shrugs Off Politics":"Federal default or nuclear war fall in the category of unprecedented and unthinkable. Faced with such risks, the usual reaction is to assume they won't happen. Yet that assumption becomes a risk in itself: It alleviates the pressure to prepare for either and multiplies the damage if they do occur."

Go deeper

American carnage

Protesters race up a hill to avoid tear gas in Philadelphia, June 1. Photo: Mark Makela/Getty Images

The list of victims has swiftly grown since George Floyd died in police custody just eight days ago.

The big picture: Protests against police brutality have turned into a showcase of police brutality, with tear gas and rubber bullets deployed against crowds. The police have the arsenals at their disposal, but we're also seeing law enforcement officers becoming targets.

McConnell blocks resolution condemning Trump's actions against peaceful protesters

Senate Majority Leader Mitch McConnell (R-Ky.) blocked a resolution introduced by Minority Leader Chuck Schumer (D-N.Y.) on Tuesday that would have condemned the use of tear gas and rubber bullets against peaceful protesters outside the White House on Monday in order to allow President Trump to walk to St. John's Church.

What they're saying: "Justice for black Americans in the face of unjust violence, and peace for our country in the face of looting, riots, and domestic terror. Those are the two issues Americans want addressed," McConnell said on the Senate floor.

George W. Bush breaks silence on George Floyd

Goerge Bush in Michigan in 2009. Photo: Bill Pugliano/Getty Images

Former President George W. Bush (R) wrote in a statement Tuesday that he and his wife, Laura, are "anguished" by the death of George Floyd, and said that "it is time for America to examine our tragic failures."

Why it matters: It's a stark juxtaposition when compared to fellow Republican President Trump's response to current civil unrest. While Trump has called for justice in Floyd's death, he's also condemned protestors and threatened to deploy military personnel if demonstrations continue.