Shelby Says He Doesn't Think Trump Will Reappoint Yellen to Fed

(Bloomberg) -- Republican Senator Richard Shelby said he doesn't think President Donald Trump will nominate Federal Reserve Chair Janet Yellen for a second term at the helm of the U.S. central bank.

Shelby said Tuesday in an interview with Bloomberg Television's Vonnie Quinn that he had spoken with the president about the Fed.

“I believe he will appoint somebody else to take her place,” the No. 2 Republican on the Senate Banking Committee said. “But ultimately, that is up to the president.”

Shelby has served for years on and previously led the Senate panel, which has direct oversight responsibility for the central bank and casts the first vote on White House nominees for the Fed Board of Governors. Some of the Alabama Republican's former staff members are also now working in the Trump administration and are helping oversee Fed nominations.

“I would like to see somebody else in there that's pro-growth,” Shelby said.

Yellen has presided over an expanding economy during her entire term. The stock market has hit record highs, and unemployment this year touched the lowest level since 2001. The jobless rate in August stood at 4.4 percent.

Aside from Yellen and National Economic Council Director Gary Cohn, Bloomberg News reported earlier this this month that the White House is also considering former Fed governor Kevin Warsh, Columbia University economist Glenn Hubbard, and Stanford University professor John Taylor for the job. In addition, there are two bankers under consideration: John Allison, the former chief executive officer of BB&T Corp., and Richard Davis, the former CEO of US Bancorp.

Trump and Yellen have met personally, and the president said in July that both Yellen and Cohn were being considered for the job, as well as other candidates.

Yellen's term as chair expires Feb. 3. Vice Chairman Stanley Fischer has said he will leave the Fed next month. In addition, there are two other Fed governor vacancies that need to be filled. Randal Quarles, a Treasury official during the George W. Bush administration, was approved by the Senate Banking Committee earlier this month to occupy a third opening, though his pick still needs confirmation by the full Senate.

To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net.

To contact the editors responsible for this story: Alister Bull at abull7@bloomberg.net, Scott Lanman