Trump makes two conservative picks for Fed
President Donald Trump picks for two open spots on the Federal Reserve Board of Governors may push for tighter monetary policy if they receive the canada goose coats Senate confirmation needed to join the Fed rate setting panel jacketstock, their records suggest. on October 12, canada goose clearance sale 2016. Canada Goose online REUTERS/Kevin Lamarque//File canada goose clearance Photo
Trump will nominate Carnegie Mellon University professor Marvin Goodfriend and former Treasury Department staffer Randal Quarles to fill two of the three open seats on the Federal Reserve Board of Governors, the New York Times said on Friday, citing unnamed people with direct knowledge of the decision.
The conservative picks come as Fed Chair Janet Yellen continues to slowly raise interest rates and lay out plans to shed some of the trillions of dollars of bonds bought in the wake of the financial crisis.
Goodfriend in particular has been skeptical of the Fed bond buying programs, saying that it is uk canada goose outlet too canada goose uk black friday close to fiscal policy.
Goodfriend and Quarles did not immediately respond on Friday to requests canada goose coats on sale for comment. A White House spokeswoman said officials canada goose factory sale were not ready to make an announcement yet.
Goodfriend, 66, a Canada Goose Online former Richmond Fed policy advisor, also buy canada goose jacket cheap has urged the central bank to adopt simpler rules governing policy decisions.
That view has support among many congressional Republicans, though Yellen has strongly opposed their proposed legislation on grounds that it would tie the Fed to make mechanical decisions Canada Goose Coats On Sale that would harm Canada Goose sale the economy. The rule at the center cheap Canada Goose of that legislation Canada Goose Outlet suggests the Fed should be raising rates more aggressively than the three annual rate hikes policymakers currently expect buy canada goose jacket for both 2017 and 2018.
That could make for an interesting dynamic with bond investors increasingly skeptical of canada goose uk shop faster rate hikes amid uncertainty over the outlook for tax cuts under Trump young administration.
After Friday report that employers added fewer than expected jobs in May, short term interest rate futures traders were still pricing in a June rate hike canada goose outlet, but Treasury yields fell as investors reduced bets uk canada goose on subsequent hikes.
One area Goodfriend may agree with Yellen is on the Fed plan to start shrinking its $4.5 trillion balance sheet before the end of the year. Though the Fed has not published its plan in detail, policymakers have canada goose store said the portfolio would shrink as if on
In an canadian goose jacket interview with Reuters last November, Goodfriend appeared to also support such a preset plan.
Fed should choose a rule cheap canada goose uk for shrinking the balance sheet so that, as it sold off its assets, canada goose black friday sale it was pre committed and markets could anticipate sales and prepare for them, he said. Despite differences of opinion with Yellen, he said then, there is interest in my point of view and my 30 something years of thinking, writing, and teaching about the Fed and central banking, then I would have to consider canada goose serving.
market participants have been barking up the wrong Canada Goose Parka tree, arguing that Trump is an easy money guy because he borrowed a lot when he was a real estate tycoon, said Stephen Stanley, Canada Goose Jackets Amherst Pierpont chief economist, who worked for Goodfriend when he was at the Richmond Fed. these two nominees are eventually confirmed, the tone of the Fed Board will instantly swing to a far more hawkish tenor.
Reporting by Ann Saphir and Jonathan Spicer; additional reporting by Steve Holland and Richard Leong; canada goose uk outlet Editing by Chizu Nomiyama and Diane Craft.