sunny.png
Monday September 23rd, 2019 1:47PM

Trump says he will tap economists for 2 key Fed vacancies

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — President Donald Trump, who has criticized the Federal Reserve for not cutting interest rates, said Tuesday that he intends to nominate two economists to fill influential positions on the central bank's Board of Governors.

Trump said he would name to the board Christopher Waller, who is executive vice president and research director at the Federal Reserve Bank of St. Louis, where he has worked since 2009. He also tapped Judy Shelton, the U.S. executive director for the European Bank of Reconstruction and Development. Shelton was previously an economic adviser to Trump's presidential campaign.

The planned nominations were announced by Trump in a tweet late Tuesday. Each must be confirmed by the Senate.

Trump's choices come after he has harshly and repeatedly criticized the Fed under Chair Jerome Powell for raising rates four times last year and for keeping rates unchanged this year. Trump has argued that the Fed, by keeping its benchmark rate in a range of 2.25% to 2.5%, is slowing economic growth and depressing the stock market.

This spring, Trump said he planned to nominate former GOP presidential candidate Herman Cain and conservative commentator Stephen Moore to the remaining two vacancies on the Fed board.

But Cain withdrew from consideration after allegations of sexual harassment and infidelity, first aired during his 2012 presidential run, resurfaced. Moore withdrew in the face of Republican opposition in the Senate after news organizations unearthed many of his writings belittling women.

Shelton has a history of attacking the Fed's policies and has also supported the gold standard, under which the value of currencies like the dollar are fixed to a specific amount of gold. Most mainstream economists who study monetary policy reject the gold standard as antiquated.

Shelton has expressed support for cutting rates, as Trump has demanded.

Waller's approach to interest rate policy is less clear but he serves as the research director in St. Louis, a regional Fed bank whose president, James Bullard, has been advocating for lower rates and even dissented at the Fed's last meeting, arguing that the Fed should immediately cut rates.

"Waller works for James Bullard and usually the research director at a regional bank and the bank president hold similar views," said Sung Won Sohn, economics professor at Loyola Marymount University in Los Angeles. "I suspect that the administration has chosen Waller because his views on interest rates are similar to those of Bullard."

Bullard said last month that he had been approached by White House officials about joining the Fed's seven-member board. He said he told the administration that he was happy in his current position as president of one of the Fed's 12 regional banks.

Before joining the St. Louis Fed, Waller was an economics professor at the University of Notre Dame for six years, and before that a professor at the University of Kentucky.

With the latest nominations, Trump will have filled six of the Fed board's seven seats including tapping Powell to be Fed chairman when Trump decided not to offer Janet Yellen a second term as chair. The number of Trump choices on the Fed board, however, has not stopped the president from attacking the central bank and Powell specifically for pursing monetary policies that the president believes are harming the economy.

The Fed next meets to consider interest rates at the end of this month and financial markets widely expect the central bank will begin cutting rates at that time if the economy continues to show signs of weakening.

At the Fed's last meeting, the central bank promised to do what was needed to protect the current 10-year economic expansion, which this month became the longest in U.S. history.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
The Latest: Navy SEAL acquitted of murder says he's grateful
A Navy SEAL acquitted of killing a wounded war prisoner in Iraq says he's "happy and grateful."
8:35PM ( 10 minutes ago )
Trump says he will tap economists for 2 key Fed vacancies
Trump says he plans to nominate Waller and Shelton for 2 Fed board vacancies
8:33PM ( 13 minutes ago )
California mom charged in son's death left parole in 2014
A woman accused of drowning her 12-year-old son in a California irrigation ditch was released from probation in 2014 after her parole officer in Montana said she didn't pose any risk to the boy she had tried to drown as a baby in a Montana river
8:33PM ( 13 minutes ago )
Associated Press (AP)
2020 hopeful Buttigieg pitches plan to fight systemic racism
Democratic presidential hopeful Pete Buttigieg pitched a plan to tackle "systemic racism" he said exists in everything from housing to health care, education and policing.
7:27PM ( 1 hour ago )
Trump chooses Waller and Shelton for 2 Fed board vacancies
Trump says he will nominate Waller and Shelton for 2 Fed board vacancies
7:22PM ( 1 hour ago )
Trump touts July 4 military 'salute'; critics see politics
Critics question whether President Donald Trump is using the military as a political prop on July 4
7:08PM ( 1 hour ago )
AP Online Headlines - Washington
Hickenlooper urged to swap White House bid for Senate run
Staff members are pressuring former Colorado Gov. John Hickenlooper to scrap his flagging presidential campaign and instead run for Senate in his home state _ but he's so far refused
4:54PM ( 3 hours ago )
GOP political donation tool to rival Trump's preferred app
A Texas company is launching a new political donation app for Republicans that will rival a similar platform endorsed by President Donald Trump, potentially complicating GOP efforts to match Democrats' online fundraising success
4:06PM ( 4 hours ago )
Catholic archdiocese sues insurers over future abuse claims
The Roman Catholic Archdiocese of New York has sued more than two dozen insurance companies to compel them to cover claims filed by people who say they were abused by clerics
3:30PM ( 5 hours ago )
AP Online Congress News
Blackjewel CEO confident bankrupt coal operator will rebound
The CEO of one of the nation's largest coal producers says he's confident the company will bounce back despite the shutdown of several mines after it filed for federal bankruptcy protection
6:56PM ( 1 hour ago )
Tesla's car deliveries rebound, but challenges still abound
Tesla overcomes slow start to the year to set a quarterly record for deliveries of its cars from April through June
6:55PM ( 1 hour ago )
Italy judge rules to free captain of migrant rescue boat
A judge in Sicily says the sea captain who rammed a police boat while bringing 40 rescued migrants to an Italian port must be freed from house arrest
6:47PM ( 1 hour ago )
AP Business
US stocks rebound to nudge the S&P 500 to record high again
Stocks shook off an early wobble to eke out small gains Tuesday, nudging the S&P 500 index to an all-time high for the second straight day
5:00PM ( 3 hours ago )
New ECB head Lagarde backed Draghi stimulus while at IMF
Christine Lagarde, nominated as next head of the European Central Bank, is a former French finance minister with a politician's ability to forge compromise and a record of supporting the stimulus policies of outgoing bank head Mario Draghi
4:56PM ( 3 hours ago )
Iranians say US sanctions hurt people, not government
Iranians say US sanctions hurt the average person, not those in charge, as tensions rise between the US and Iran
3:26PM ( 5 hours ago )
AP Business - Economy
The Latest: Macron looks at Brexit as EU picks new leaders
French President Emmanuel Macron says a no-deal Brexit "remains a possible option" but it shouldn't be feared
4:55PM ( 3 hours ago )
The Latest: Macron says EU picks reflect Franco-German bond
French President Emmanuel says the selection of candidates for the European Union's top jobs reflects the Franco-German alliance that's dominated the EU since its inception
4:25PM ( 4 hours ago )
Leonardo DiCaprio helps create new environmental alliance
Leonardo DiCaprio is taking his environmental up a notch, creating a new nonprofit environmental powerhouse with billionaire investors and philanthropists Laurene Powell Jobs and Brian Sheth
3:30PM ( 5 hours ago )
AP Business - Industries
Global stocks mixed after Wall Street record on trade truce
Global stocks mixed after Wall Street benchmark hits new high following US-China trade truce
5:11AM ( 15 hours ago )
Australia's central bank cuts key interest rate 0.25% to 1%
Australia's central bank has cut its benchmark interest rate to a record low of 1% in a bid to boost the economy
2:44AM ( 18 hours ago )
S&P 500 hits all-time as US-China trade truce spurs optimism
Wall Street kicked off July with a record high for S&P 500 index after a cease-fire in the U.S. trade war with China put Wall Street in a buying mood
5:15PM ( 1 day ago )
AP Business - Financial Services
The Latest: Navy SEAL acquitted of murder says he's grateful
A Navy SEAL acquitted of killing a wounded war prisoner in Iraq says he's "happy and grateful."
8:35PM ( 11 minutes ago )
California mom charged in son's death left parole in 2014
A woman accused of drowning her 12-year-old son in a California irrigation ditch was released from probation in 2014 after her parole officer in Montana said she didn't pose any risk to the boy she had tried to drown as a baby in a Montana river
8:33PM ( 13 minutes ago )
Judge blocks Trump policy keeping asylum-seekers locked up
A federal judge in Seattle has blocked a Trump administration policy that would keep thousands of asylum-seekers locked up while they pursue their cases
8:15PM ( 31 minutes ago )
The Latest: Skaggs mourned with moment of silence in Texas
The Latest: The Rangers and Angels held a moment of silence for LA pitcher Tyler Skaggs a day after the 27-year-old's death
8:14PM ( 32 minutes ago )
Delle Donne, Wilson lead early WNBA All-Star balloting
Elena Delle Donne, A'ja Wilson lead early returns for WNBA All-Star fan balloting
8:10PM ( 36 minutes ago )