BusinessInsider/Pedro Nicolaci da Costa/02-14-17
President Donald Trump already had ample leeway to reshape the Federal Reserve, with Janet Yellen’s term as chair expiring early next year and two key slots on the central bank’s board left open after Republicans failed to bring President Barack Obama’s longstanding nominees to a vote.
Now, with the sudden resignation of Daniel Tarullo, Trump pretty much has free rein over the powerful US central bank.
PG View: If the plan is to cut taxes and unleash a massive infrastructure spending plan, it might behoove President Trump to pack the Fed with doves. Similarly, Trump’s concerns about dollar strength could easily be resolved by reversing expectations of further rate hikes.