A pair of nominees to the Federal Reserve Board vowed Tuesday to protect the independence of the agency if confirmed, amid concerns by some that President Donald Trump may object to future central bank monetary policy.
Trump last month nominated Michael Clarida, a managing director at PIMCO and Columbia University economist, to serve as the Fed’s vice chairman, and at the same time tapped Kansas Banking Commissioner Michelle “Miki” Bowman to serve as the Fed Board’s designated member with community banking experience. At a Senate Banking Committee hearing, both indicated that they believed in the importance of an independent Federal Reserve but avoided taking hard stances on pending regulatory issues.
A significant portion of the hearing was spent elucidating the nominees’ views on bank regulation. Both nominees acknowledged that both the lack of regulation and imprudently low interest rates contributed to the financial crisis, and noted that both regulation and secular market forces had contributed to the decline in the number of community banks over the last 30 years.
Read more in American Banker.