Bloomberg is reporting that advisors to present Trump or biasing toward taking a temporary Fed Gov. to fill the seat of the resigned Fed Kugler.
- A short-term Fed picked would give Trump additional time on a chair decision.
- Candidate will have likely worked in the government, and been previously vetted by the Senate
The Trump administration maintains that the president wants to keep the Federal Reserve independent (aha?). Earlier, a White House NEC advisor Hassett accused the Fed of being political, claiming members on the board vote along party lines (that is who appointed them).
Make no mistake—Trump views the Fed as “his house.” He may not have full control over it...yet.... but he is welcoming Kugler’s resignation from the board. It allows him to put his political stamp on the board. He is also eager for Powell to step down and have the most dovish of doves appointed.
In Trump’s eyes, the Fed is much like the Supreme Court—an institution designed to operate independently as part of the checks and balances system and at the same time limit his power. That independence does not sit well with him. Where there is a will, there is a way, however. His "will" is to make the Fed, his house.
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