In this new article, Jim Rickards suggests that Trump will have an historic opportunity to shape the Federal Reserve since there so many vacant seats to fill, probably including Janet Yellen. Below are a couple of excerpts from the article.
----------------------------------------------------------------------------------------------------------------"Donald Trump has the opportunity to appoint a higher percentage of the Board of Governors of the Federal Reserve system at one time than any president since Woodrow Wilson.
President Wilson signed the Federal Reserve Act during the creation of the Fed in 1913 when they had a vacant board. At that time, the law said the secretary of the Treasury and the comptroller of the currency were automatically on the Fed’s board of governors. But besides that, President Wilson selected all five of the other participating members.
Now Trump has the opportunity to fill more seats on the Fed’s Board of Governors than any president since then."
. . . .
"But don’t be surprised if Trump goes with a hard-money board. In fact, that’s what I expect. These will be hard-money, strong-dollar people, contrary to a lot of expectations. Trump advisers include hard-money advocates like Dr. Judy Shelton, David Malpass, Steve Moore and Larry Kudlow. I expect Trump to heed their advice."
My added comments: It's interesting that Jim Rickards expects President Trump to go with a "hard-money board" filling positions with "strong-dollar people" given his forecast for a much weaker dollar. Perhaps he expects the dollar to weaken substantially first and then get some support from the new Fed members later? Time will tell.
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