Lloyd Blankfein, the CEO of Goldman Sachs,
was on CNBC’s Squawk Box Wednesday morningto discuss the economy, the markets, and the Federal Reserve.
The anchors asked Blankfein if he had a favourite candidate to be the next Chairman of the Federal Reserve.
He said that he liked all of the candidates.
But without specifically endorsing her, Blankfein made a strong case for current Vice Chair Janet Yellen.
He specifically argued that Yellen as Fed Chair would represent continuity in leadership, which would be important for credibility.
Blankfein explained that as an institution that employed forward guidance to guide monetary policy, a new Fed Chair distant from the existing Fed could represent too big a change.
Currently, the Fed is employing an unemployment rate threshold of 6.5% and an inflation rate threshold of 2.5% to justify its near-zero% interest rates.