Trump Can Mold Federal Reserve in His Image

Jon Government

President Donald Trump will have the opportunity to mold the Federal Reserve in his own image. But what that will look like remains to be seen.
As Jim Rickards points out, Trump will appoint a higher percentage of the Fed’s board of governors than any president since Woodrow Wilson chose the original board.
Seven members make up the Federal Reserve’s board of governors. Of course, regional reserve bank presidents also have some influence. But you find the real decision making power on the board. As of last week, four of the seven Fed board seats are vacant.
Consider the power this gives the president. Four seats makes up a voting majority.
Trump will own the Fed. Meaning, whatever the president wants monetary policy to be, he’ll get. In other words, Donald Trump will be able to shape the Fed’s majority. But the tricky part is figuring out how he plans to shape it.’

This post was published at Schiffgold on SEPTEMBER 13, 2017.