The following is about Mr. Trump in only one respect: He has an unprecedented opportunity to re-make the Federal Reserve. As active as he has been since the election, neither he nor his staffers has said a word about the Fed, neither policies nor people.
- Mr. Trump may immediately appoint three new governors and announce new Chair and Vice Chair intentions in little more than six months.
- The means of limiting Fed power usually involves forcing mechanical, “rule-based” decision-making onto the Fed and removing its discretion.
- The Fed and its staff believe the U.S. economy is growing as fast as it can without igniting inflation.