Published: Tue, April 17, 2018
Finance | By Claude Patterson

Columbia economist Richard Clarida tapped for vice chair of Federal Reserve

Columbia economist Richard Clarida tapped for vice chair of Federal Reserve

The Fed board now has only three serving members, two of whom are Trump appointees, allowing him the unprecedented opportunity to select all but one of the board's seven members.

Trump will also nominate Michelle Bowman, Kansas' top banking regulator, to the Fed's Board of Governors.

While Trump was highly critical of the Fed during the 2016 presidential campaign, his selections for Fed jobs so far have come from mainstream economists rather than the ranks of conservative economists who have been highly critical of the central bank's actions in the wake of the 2008 financial crisis.

Clarida has taught at Columbia since 1988, except for a break in 2002 to serve as assistant secretary for economic policy at the United States Treasury in the Bush administration.

Both nominations will be subject to approval of the Congress.

President Donald Trump announced Monday that he would nominate the economist Richard Clarida to be the Federal Reserve's next vice chairman.

A contender to be named vice chair of the U.S. Federal Reserve, Richard Clarida, managing director at Pacific Investment Management Co., (PIMCO), appears in this handout photo provided March 1, 2018.

Clarida, a Republican economist, has drawn comparisons to newly installed Fed Chairman Jerome Powell for a pragmatic approach to monetary policy. He has 20 years of investment experience and holds a economics from Harvard University.

But another Trump nominee, Carnegie Mellon University economist Marvin Goodfriend, faces stiff opposition from Democrats, casting doubt on chances he will be confirmed by the full Senate. In articles written for PIMCO, Clarida has outlined views largely consistent with current Fed policy.

In addition, the No. 2 spot on the Fed's interest rate panel has come open with the impending departure of William Dudley, president of the Fed's NY regional bank.

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