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Trump to nominate Clarida, Bowman to Fed's Board of Governors

Reuters  |  WASHINGTON 

(Reuters) - U.S. said on Monday he would nominate Richard Clarida, an who advises Pimco, and Michelle Bowman, a regulator, for two key positions at the

If they are confirmed by the U.S. Senate, Clarida would serve as of and Bowman would become a member of the board, according to a statement.

The job, vacant since stepped down in October, is considered one of the most influential Fed positions alongside the and the head of the

Clarida, a at who has worked as at Pacific Investment Management Co, is seen aligning with the Fed's current chairman, Jerome Powell, whom he last autumn called a "smart choice" for Fed in an entry on a blog.

In earlier writings, he aligned with the core group of Fed economists who feel interest rates are likely to remain lower, and economic growth somewhat slower, than in the past.

But also warned in December that investors may be "a little too relaxed" about the threat of higher inflation.

Bowman, the of the State Commission since 2017, would fill a position at the Fed reserved for someone with experience.

That seat has remained open since 2014, when the passed a bill requiring the Fed to reserve one seat on its policymaking board for someone familiar with the thousands of institutions with assets of less than $10 billion.

Bowman's family owns the Farmers and Drovers of Council Grove, Kansas, where she served a vice from 2010 until her appointment as state She is also familiar with after stints on the staff of former Republican U.S. Senator of and as a deputy to former Homeland

The country's smaller banks have complained frequently that the Fed's rules have become burdensome and too strict for institutions that pride themselves on knowing their customers - and their credit risks - in detail.

"She will be sensitive to the whole body of mortgage and capital regulations, which have become onerous on smaller banks," said Camden Fine, of the Independent Community Bankers of "That is a perspective that most of the time has been missing" at the Fed.

(Reporting by Jason Lange; Editing by and Peter Cooney)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 01:07 IST
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