Trump has also met with Yellen and White House National Economic Council Director Gary Cohn, who are both in the running for the post but unlikely to be nominated by the president, according to Posen.
Other potential contenders under consideration include Stanford University economist John Taylor, Columbia University economist Glenn Hubbard, and former BB&T Bank chief executive John Allison.
"My expectation is whoever Trump appoints will end up acting much more dovish than people expect," Posen said, expressing his concern that the next Fed Chair could be like former Fed chief Arthur Burns under the Nixon administration, who was slow to raise interest rates in the early 1970s.
"Even if he is a very smart professor, who talks a lot about monetary rules and tightening, I think in the end for political pressure reasons, they will tighten less than people expected," he said.
SUBDUED INFLATION
However, "it's probably not the worst thing" with a more dovish Fed for the next couple of years, as U.S. inflation has been running stubbornly below the central bank's target of 2 percent for five years, said Posen, a former policymaker at the Bank of England.
"There is a case that having inflation be higher than target for a couple of years wouldn't be so bad ... I'm not sure this does any damage in the short term," he said.
The core personal consumption expenditure (PCE) index, Fed's favor inflation indicator, rose only 1.4 percent year on year in July, lower than the 1.9 percent gain in January.
【国际英语资讯:Interview: Trumps reshaping of Fed could end up with more dovish policy stance: U.S. econo】相关文章:
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