Gary Cohn, the former Wall Street trader and second-in-command at Goldman Sachs, has emerged as a contender to succeed Janet Yellen as Chair of the Federal Reserve come February. Cohn currently serves as Director of the National Economic Council, a post he was granted following President Trump’s election in November.  Cohn, who helped lead Goldman’s tactful glide through the global financial meltdown, is as credentialed as anyone on Wall Street. His background however, which stands in stark contrast to that of the prototypical Fed Chair, presents a mix of challenges and upside.

First, Gary Cohn is not an economist. The primary role of the Federal Reserve is to craft monetary policy that ensures the American economy runs soundly. Unsurprisingly, the Federal Reserve is packed wall to wall with economists. A PhD in economics seems to have become prerequisite for the Fed Chair seat, as well as for the regional fed Chair seats Cohn would be tasked with leading. Fed heavyweights tend to come from academia or the government, though exceptions do exist. Three of the twelve current regional Chairs are non-PhD, ex-bankers. Cohn however, if nominated, would be the first Fed Chair to come from industry in 40 years, and the first without graduate education in 70 years

Cohn’s industry experiences as COO of Goldman Sachs—leading teams, evaluating and managing risk, and navigating market crises—would be valuable to him as Chair. The liability for Cohn lies in the fact that his background is not deeply technical, while at times the nature of his work could be. There is little question that Cohn could quickly absorb a primer on regression analysis. However there is a steep learning curve to leading and debating colleagues who have been doing it for 20 plus years. Cohn’s leadership capabilities could be beneficial in corralling differing views within the Fed; however he will need to rely heavily on his team in grappling with the technical nuances of central banking.

Second, the corporate culture in which Gary Cohn was reared and excelled is vastly different from that of the Federal Reserve.  Big, bald and direct, Cohn was known to prowl the Goldman trading floor, plant his foot on a trader’s desk, and demand an update on the markets. Although few are holding their breath on a story where Cohn hoists a shoe onto the desk of the vice chair, the cultural differences go far beyond management style. Gary Cohn is a trader, and traders often rely on gut and intuition to make tough calls. A marquee characteristic of both Cohn and his former Wall Street employer is decision-making that is both quick and bold. And as of late, the Fed has been neither.

During its quest to raise interest rates, the Federal Reserve has been methodical and deliberate. The cadre of policymakers continues to face the conundrum of strong employment and low inflation; the federal funds rate sits at 1.25% nearly ten years removed from the financial crisis. On the one hand, the presence of a forceful decision-maker atop the Fed could be a great thing for an institution that has faced criticism for analysis paralysis and data dependency. On the other, a gunslinger bent on the speedy escalation of interest rates runs the risk of tipping the economy back into recession. The balancing act for Cohn will be forcing some direction into the interest rate discussion while knowing that the Fed operates in a world where too much direction can be a bad thing.

Cohn’s ascent serves as a reminder that we live in a country where a dyslexic boy from Ohio with heap of a drive and bachelor’s degree can become the world’s preeminent central banker.  Installing the ex-trader as head of the Federal Reserve would be a policy experiment of mammoth proportions. Some aspects of Cohn’s background—strong leadership and an intimate history with the markets—could be highly advantageous to running one of the world’s most influential institutions, one that affects lives from Wall Street to Main Street. With that said, it is fair to wonder whether a brash play-caller without formal economics training is well-suited for the world of monetary policy. Should Mr. Cohn relocate his office to Constitution Ave in February, we will have our answer.