This is what it sounds like when doves arrive.
In a generally quiet week for Fed-watching, President Donald Trump made some noise. No, he didn’t thump the tub for lower rates again, but in a series of tweets Tuesday he said he is planning to nominate two new people to fill two Federal Reserve Board vacancies. Both are considered interest rate doves, that is, favoring lower rates.
One is well-known economist Judy Shelton, U.S. executive director at the European Bank for Reconstruction and Development, and the other Christopher Waller, the executive vice president of the Federal Reserve Bank of St. Louis.
Trump’s recent Fed nominations haven’t had much luck getting approved. The latter two might be likely to get the nod. Still, Democratic animosity towards Trump is high and getting more intense as the presidential candidate debates take place (See page 10).
Meanwhile, across the pond, another dove was tapped. Christine Lagarde, chairwoman of the International Monetary Fund, was nominated to lead the European Central Bank, after Mario Draghi leaves in October. In terms of easy monetary policy, though Lagarde isn’t a banker, she’s previously supported that approach and is seen as an acolyte of Draghi’s on that topic.Just as the Fed is grappling with infla...