Once upon a time, before he was president, Donald Trump railed against a Federal Reserve board and chair who would dare keep interest rates artificially low for political purposes. Now that he is president, however, he kinda likes the look of a guy who thinks pushing rates lower than low might not be the worst idea.
Marvin Goodfriend, a professor at Carnegie Mellon University, is in contention to fill one of three vacancies on the board, alongside Randal Quarles, a former Treasury Department official. Mr Goodfriend has a reputation as a free thinker who has been critical of some of the Fed’s crisis-era interventions but also willing to contemplate radical monetary policy….
At the same time, however, Mr Goodfriend has been willing to contemplate the use of deeply negative rates to stimulate growth — something that the Fed has thus far not embarked upon. In 1999 he wrote that negative rates were a feasible option, years before central banks started actually experimenting with them.
Trump considers negative rates advocate for Federal Reserve role [FT]
Trump Said to Pick Nominees for 2 Positions on Fed Board [NYT]
Trump Considering Economist Marvin Goodfriend for Fed Board [WSJ]
Trump set to make first moves at completely revamping the Federal Reserve [CNBC]