President-elect Donald Trump appears ready to mould the future of the Federal Reserve.
According to a report from Bloomberg, citing two transition team sources, Trump plans to fill the two open seats on the Fed’s Board of Governors within the first three months of his presidency.
These seats have remained open throughout much of President Barack Obama’s administration due to political wrangling between the president and Congress.
Members of the Fed’s Board of Governors are permanent voting participants of the Federal Open Markets Committee, which decides monetary policy for the US.
As noted by former Minneapolis Fed President Narayana Kocherlakota, Trump can also appoint two more members of the Board of Governors at the end of Fed Chair Janet Yellen and Vice Chair Stanley Fischer’s term in 2018 given that they vacate their seats. If that were to happen, a third of Trump appointees would be FOMC voting members.
The possible moves also come amid concerns over Trump’s influence on the central bank. Chair Yellen and other members have recently defended the Fed’s political independence as vital to maintaining a strong economy.
During the campaign, Trump claimed that the Fed was working with the Obama administration in order to keep interest rates artificially low to benefit Obama and Trump’s Democratic opponent Hillary Clinton.
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