- Kan is no longer being considered for a spot on the Federal Reserve board, according to two senior White House officials familiar with the nomination process.
- The National Economic Council held informal conversations with Kan about the position but no formal interview has taken place.
Derek Kan, an undersecretary for policy at the US Department of Transportation, is no longer under consideration for a spot on the Federal Reserve board, according to two senior White House officials familiar with the nomination process.
It was not immediately clear why administration officials backed down from plans to vet Kan for one of two vacant seats on the Board of Governors, the officials said. The National Economic Council held informal conversations with Kan about the position but no formal interview has taken place.
The senior White House officials spoke to Business Insider on the condition of anonymity because they were not authorised to discuss internal deliberations. Neither Kan nor the Department of Transportation responded to phone calls or emails requesting comment.
Kan became an adviser to Transportation Secretary Elaine Chao in 2017, after spending two years as the general manager at the ride-hailing company Lyft. Previously, he served on the board of directors for Amtrak under President Barack Obama.
President Donald Trump has struggled to fill the seven-member Board of Governors, with Republican lawmakers and conservative economists pushing back against his past four picks. But Kan appeared better positioned to gain support on both sides of the aisle in the Senate, which assesses and confirms Fed nominees.
“Derek Kan is a serious, smart person and a vast improvement over the previously mentioned names,” Democratic Senator Brian Schatz of Hawaii wrote on Twitter after reports of the potential nomination surfaced.
Conservative commentator Stephen Moore withdrew from consideration for the Fed board in early May. That came after key Republican senators indicated they would not vote for Moore, whose history of denigrating comments about women sparked widespread backlash.
Former pizza-chain executive Herman Cain bowed out of contention for an open Fed seat weeks before after renewed concerns over sexual-harassment accusations that were made public during his failed presidential bid in 2012. Months earlier, the Senate declined to advance the nominations of economists Nellie Liang and Marvin Goodfriend.
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