Trump’s New Faces on the Fed
The appointment of Quarles and Goodfriend to fill two empty seats on the Federal Reserve Board is disappointing. Quarles, to be Vice Chair of Supervision to replace Tarullo, doesn’t appear to be the kind of deregulatory firebrand who could ideally champion the rollback of Dodd Frank. Goodfriend is associated with the permahawk policy faction that has enabled GOP orthodoxy since the Ron Paul “end the Fed” campaign. He’ll be a useful diversifier on the Board, but would be a dangerous chairman. These nominations lower the chances that Trump will reappoint Yellen, but we aren’t changing our call for that yet.