New nominee for the Fed: a community banker (which is what Yellen wanted)

January 6th, 2015 at 3:21 pm

According to the NYT:

Mr. Landon, 65, ran the Bank of Hawaii from 2004 to 2010. It is one of the largest banks in the state, with total assets of about $12.4 billion – making it a relatively large community bank. Under Mr. Landon’s leadership, the bank survived the financial crisis without federal assistance and prospered in its aftermath.

After stepping down, he helped to create BanCapital, a community bank investment fund based in Portland, Ore. He has also taught at the University of Utah and the University of Hawaii, and he serves on the boards of the Public Broadcasting Service and the Smithsonian Institution.

I know little about this dude, but the Fed oversees community banks, which remain important and generally boring–in the good sense–institutions that were not heavily implicated in the financial shenanigans and meltdown around the housing bubble.

The key question from my perspective is: will he be an ally for Chair Yellen’s emphasis on the need to get to full employment and the recognition that we do not face inflationary pressures right now, either in the current data or in expectations data? I do not know the answer to that question, but I’m confident that these were key considerations by the White House in making this choice.

Can he be confirmed in the Senate? Remember, it only takes a majority now, not 61. More to come.

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