Fed: Clarida nominated for Fed Vice Chair – Danske Bank

Analysts at Danske Bank note that last night it was made official that Trump is nominating Richard Clarida for Fed Vice Chair, succeeding Stanley Fisher, who stepped down in October.

Key Quotes

“In our view, it is a good choice given Clarida's very strong background as he has done much research on monetary policy, served as Vice Treasury Secretary and has worked at a financial institution (PIMCO, one of the largest fixed income investment firms). Clarida still needs Senate approval before taking up the position. Based on Clarida's recent comments, he is likely to be a centrist supporting the current policy of gradual hikes (three to four hikes this year). While we think the Fed is on autopilot at the moment, it is good in the long run with a very skilled Vice Chair, as the Fed has lost a lot of human capital with Janet Yellen, Stanley Fischer and soon William Dudley leaving the FOMC. Besides Clarida, Trump has nominated Michelle Bowman for Fed Governor (also requiring Senate approval).”