Trump Appointees Could Reshape Fed


President Donald Trump will have the opportunity to fill three or more vacancies on the Federal Reserve board, possibly turning the central bank on its head.

The president campaigned hard against the Fed's low-interest-rate policies, with many speculating he would seek candidates who would favor higher borrowing costs.

“Its supposed to be apolitical, historically its had a pretty good track record in that regard, but clearly if you appointed some highly partisan individuals to the board of governors and they got through Congress, that could definitely reshape the Fed,” says economist Ray Perryman, president and CEO of The Perryman Group.

However, Trump's choices may be driven more by practical experience.

“I would think he's going to appoint people who move toward an easier monetary policy, lower interest rates, because that would accommodate some of his economic growth goals that he has,” says Dr. Perryman.

“The Federal Reserve has a very bloated balanced sheet now and really needs to get it back under control,” he says. 

“If you have a president who wants to promote economic growth and try to make his numbers look as possible, that's sort of the opposite of what he's likely to want.”

If Trump wins a second term, Perrman says he could replace the entire board of governors before leaving office.


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