Clarida and Bowman were the fourth and fifth nominees announced by Trump to fill the Fed board's vacant seats, following chair Powell, vice chairman for banking supervision Randal Quarles, and Carnegie Mellon University professor Marvin Goodfriend whose nomination to be a Fed governor still awaits Congressional approval.
The country's smaller banks have complained frequently that the Fed's rules have become burdensome and too strict for institutions that pride themselves on knowing their customers - and their credit risks - in detail. In a statement released by the White House on Monday, the President is nominating Richard Clarida as Vice Chair and Michelle Bowman for an open Governor's position.
Bolstered by a recovering US economy and higher levels of confidence that the US Federal Reserve will achieve its target inflation in the near future, central bank rate setters have stated that future increases in borrowing costs could happen more quickly than originally anticipated over the next few years. As vice chairman, Clarida would serve as the No. 2 Fed official.
Clarida is now an economic professor at the Columbia University, as well as managing director and global strategic adviser at Pacific Investment Management Co. He was a staff economist on the Council of Economic Advisers under President Ronald Reagan from 1986-87, an adviser at the New York Fed from 1991-92 and 1995-97, and an assistant secretary for economic policy at the Treasury from 2002-03. The position is reserved by Congress for a community banker or a regulator of community banks.
The Deutsche Bank economists Peter Hooper and Matthew Luzzetti praised the decision to nominate Clarida, describing him as a positive for the Fed's handling of the economy.
Trump also said he would nominate Dan Michael Berkovitz as a commissioner for the Commodity Futures Trading Commission, the U.S. regulator for futures and options trading. Berkovitz is a lawyer with the firm WilmerHale and has worked as General Counsel for the CFTC as well.
Clarida, Bowman, and Berkovitz will face confirmation in the Senate.
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