Every time there’s a regime change at the White House, there’s a lot of personnel who get changed over as well. And while it’s expected to have a new Press Secretary or Secretary of Commerce, one position is generally carried through the first term of a presidency. And that’s the Federal Reserve Chair.
But like much of Donald Trump’s presidency, even this hasn’t been traditional.
Despite Janet Yellen’s departure, investors may not want to break out the tissues just yet. Her replacement is expected to run the show in a similar manner. And that means a slow pace of rate hikes as long as the data supports it.
Historically, incoming presidents will keep the current Federal Reserve Chair for another four-year term before switching them. The was the standard, and both Ben Bernanke and Alan Greenspan both saw different leaders in the White House. Eager to make his mark, President Trump decided not to do that and announced he would not be renewing Janet Yellen’s position.