Two Candidates Reportedly Leading in Consideration for Fed Vice Chair

Two candidates are reportedly leading in consideration for vice chair of the Federal Reserve.

Bloomberg reported Thursday (Feb. 23) that Harvard University professor Karen Dynan and Northwestern University professor Janice Eberly are in the “top tier” of possible candidates being considered for nomination for the position by the White House.

Also in “serious contention” are Chicago Fed President Austan Goolsbee, San Francisco Fed President Mary Daly and Morgan Stanley Chief Global Economist Seth Carpenter, according to the report, which cited unnamed sources.

Other potential nominees may be under consideration, talks are still underway and no decision has been made, the report said.

At the same time, the White House aims to complete the process within weeks.

The White House’s nominee for the position will still have to be confirmed by the Senate.

Dynan, Eberly and Goolsbee were identified as possible candidates for the vice chair post in a Feb. 15 report by The Wall Street Journal (WSJ).

That report said Fed Governor Lisa Cook and Boston Fed President Susan Collins were also among the contenders.

Like Bloomberg, the WSJ said President Joe Biden hasn’t made a final choice of nominee and may not announce a decision for weeks.

This nomination process follows Biden’s Feb. 14 appointment of then-Fed Vice Chair Lael Brainard as director of the National Economic Council (NEC).

“[Brainard] is a trusted veteran across our economic institutions, and understands how the economy affects everyday people,” Biden said when announcing the appointment.

Brainard became a member of the Board of Governors of the Federal Reserve System in June 2014 and became vice chair in 2022, according to the Federal Reserve History website.

She resigned upon being appointed to the position at the NEC.

Bloomberg reported Feb. 14 that Brainard has been one of the Fed’s most “dovish” members, as she has signaled that the central bank may be able to lower inflation without extensively damaging the labor market.

In her new role at the NEC, Brainard succeeds Brian Deese, who said in early February that he would be leaving that position, according to the Bloomberg report.