Bloomberg has the scoop.
- The Trump administration is reviewing options for exerting more influence over the Federal Reserve’s 12 regional banks, potentially extending its reach beyond personnel appointments in Washington.
- The administration’s goal is to scrutinize how regional presidents are vetted and chosen, as they are not Senate-confirmed, and the Board of Governors is next scheduled to authorize the current roster of reserve bank presidents in February.
- The move is seen as an extraordinary step in Trump’s campaign to influence monetary policy, with former Fed Vice Chair Lael Brainard warning that any political push to revamp the FOMC would run the risk of stoking inflation and longer-term interest rates.
This is another nasty escalation of Trump’s war on the Fed.
