Barclays: “Significant Change Is Coming To The Fed Over The Next 18 Months”
by Tyler Durden
ZeroHedge.com
Feb 11, 2017
Following yesterday’s surprise resignation announcement by Obama friend, and Fed “regulatory point man” Daniel Tarullo, which in turn followed last week’s resignation announcement by the Fed’s general counsel Scott Alvarez, and which means that there will be three open governor seats at the Fed (resulting in more Fed presidents, 5, than governors, 4, until the vacant slots are filled), Trump can now populate the Fed board with governors whose views echo his own – especially if strong pro-Clinton supporter and donor, Lael Brainard, is the next to go – even if it is still unclear just what that view is.
Between Trump’s USD-positive proposed trade policies and his USD-negative currency war statements, it remains to be seen if Trump wants a stronger or weaker US currency.
In any case, Barclays’ Fed-watcher Michael Gapen warns that no matter what, “significant change is coming to the Federal Reserve Board of Governors over the next 18 months,” although – like most other things in flux these days – what that change will be, is also unclear. What is more clear, however, is that “depending on the plans of Governor Lael Brainard, we would not be surprised to see five or six new faces on the board by the middle of 2018.”
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