It was a good run, Janet Yellen.
It's crucial that the Federal Reserve remain a nonpolitical and independent institution, and this begins with the selection of Fed chair. Both Ben Bernanke and current chair Janet Yellen have demonstrated that sound monetary policy that is credible and transparent can pull back the nation from the brink of economic disaster. That's why Trump's top contenders for the position, current Federal Reserve governor Jerome Powell and former governor Kevin Warsh, are poor choices. Both Powell and Warsh lack the formal training necessary to lead monetary policy in an increasingly complex global economy, and this could lead to the politicization of the Federal Open Market Committee (FOMC).
Powell, who is a lawyer by training, began his career as an investment banker and became a partner at The Carlyle Group before serving as Assistant Secretary of the Treasury in the G. W. Bush administration. His public statements and voting record on the FOMC have so far been consistent with Chair Yellen's agenda of normalizing monetary policy.
The younger Warsh rose through the ranks to become an executive director at Morgan Stanley and served on G. W. Bush's economic council prior to his tenure on the Board of Governors. Although Warsh was credited for linking Ben Bernanke with Wall Street executives during the onset of the financial crisis, he was also critical of Bernanke's leadership of the Fed in pursuing aggressive quantitative easing. Given that personal relationships are important in Trump's business decisions, the fact that Warsh's father-in-law, billionaire Ronald Lauder, is Trump's good friend is certainly a bonus for his chances.