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Trump nominates ex-Fed economist Liang for Fed board seat: officials

Posted by: Admin | Posted on: September 19th, 2018 | 0 Comments

WASHINGTON (Reuters) – U.S. President Donald Trump on Wednesday nominated former Federal Reserve economist Nellie Liang to the U.S. central bank’s board of governors, two White House officials said.

Liang established the Fed’s Division of Financial Stability in 2010. She joined the Brookings Institution in 2017.

The officials, who spoke on condition of anonymity, told Reuters that Liang has a strong background on financial and monetary stability, including crisis response, and is considered a good fit for the Fed board.

In an August 20 interview with Reuters, Trump said he was “not thrilled” with the Federal Reserve under his own appointee, Chairman Jerome Powell, for raising interest rates and said the U.S. central bank should do more to help him to boost the economy.

Liang is a senior fellow in economic studies at the Brookings Institution and a visiting scholar at the International Monetary Fund’s monetary and capital markets department.

Liang spent the bulk of her career as an economist at the Fed, and was tapped in the wake of the 2007 to 2009 recession to build out the central bank’s fledgling office of financial stability.

Issues around financial stability have figured increasingly into the Fed’s policy debates, as policymakers both created new oversight strategies like the stress testing of banks, and deliberated over whether financial market risks should influence the path of interest rates.

In a paper presented at Brookings last week Liang argued that officials should get in front of potential problems early and forcefully, a perspective she would carry to the board as the Fed considers how to prepare for any future downturn.

Reporting by Steve Holland and Howard Schneider; editing by Tim Ahmann, James Dalgleish and Diane Craft

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