President Trump is looking to Add Allies on the Federal Reserve Board
President Trump is hoping to add economist Judy Shelton and Christopher Waller to the Federal Reserve’s Board of Governors. The Committee on Banking, Housing and Urban Affairs will conduct a hearing on the nominations of Judy Shelton and Christopher Waller on Feb. 13 at 10 a.m. in Washington
The Senate hearings occurred last week and Judy Shelton is raising some eyebrows for her outside the box thinking. She has talked about returning to the gold standard which could handcuff the Fed if a recession or if inflation rises above 2%. She was also against raising rates until Trump took the Fed to task for raising and not cutting enough.
“Even leaving aside her fondness for the gold standard, which makes a lot of senators uneasy, many Republican senators take Fed independence seriously. That issue will be difficult for Shelton,” said Ian Katz, a financial policy analyst at Capital Alpha Partners. Such comments have made her a “magnet for controversy,” he said.
White House economic adviser Lawrence Kudlow expects she would quickly win Senate confirmation. “This is an experienced, savvy, professional woman who will add enormous value to the Federal Reserve Board,” he said in an interview.
The Fed is expected to cut at least two times in 2020 after three cuts in 2019.