The Federal Reserve has two seats up for grabs and Donald Trump gets a say at who gets to sit at the table in the future. He might even potentially have the power to change the landscape for the Federal Reserve even more in 2018 as two more seats open up.
The Federal Reserve Board of Governors is a seven-person team that votes to set the nation’s monetary policy. The Fed is also responsible for regulation in the financial industry. Just one opening certainly has an influence on the whole economy, not to mention four total seats.
The full term of a Governor is 14 years; appointments are staggered so that one term expires on January 31 of each even-numbered year. This was intended to give too much power to one sitting President. President Obama nominated several candidates, yet they were never confirmed by the Senate, which now leaves two vacancies.
Obama nominated Allan Landon to a federal reserve governeor postion, but Senate Banking Committee Chairman Richard Shelby blocked the nomination, citing Federal regulation.
“I will remind you this is no small role given the Fed’s unprecedented authority over our financial system granted in Dodd-Frank,” Mr. Shelby said at a Senate Banking Committee hearing. “Leaving the position vacant also deprives Congress of an important oversight tool as the vice chairman for supervision is statutorily required to testify before this committee twice a year.”
“The president should obey the law and hold the Federal Reserve accountable for its actions,” Mr. Shelby said in his opening remarks at a confirmation hearing for two Securities and Exchange Commission nominees and a nominee to head the U.S. Mint
Now with a Republican House and Senate backing him, Donald Trump will probably get more support in filling the positions. He has already appointed Ralph Ferrara is leading the charge in assembling a pool for Donald Trump to choose from.
The appointments, once approved, are set for the 14-year appointment and can not be removed for political views. This is quite similar to the Supreme Court, with the exception that Supreme Court appointees are lifetime appointment.s A 14-year duration certainly allows a governing body to sink their teeth into what is going on in the country and affect monetary policy. But it also makes the appointment that much more important for a President who has to consider the appointment will be voting on how to affect interest rates, regulations, and the like for much longer than the President can implement decisions.
Business Insider says there are already people lobbying for consideration, including policies wanks like Thomas Hoening, current FDIC Vice Chairman
Financial services watchers are already speculating that Thomas Hoenig, currently vice chairman at the FDIC, is positioning himself as a contender for the role.
Other possible contenders include John Dugan, a former Comptroller of the Currency who now advises banks on regulations; David Nason, chief executive officer of GE Energy Financial Services Inc.; Randall Guynn, a top banking lawyer at Davis Polk & Wardwell; and former Securities and Exchange Commission member advising Trump on financial-regulation appointments, Paul Atkins, who runs Washington consulting firm Patomak Global Partners.