Trump formally announces intent to nominate Waller, Shelton to Fed

Trump formally announces intent to nominate Waller, Shelton to Fed
© Greg Nash

President TrumpDonald John TrumpTrump passes Pence a dangerous buck Overnight Health Care — Presented by American Health Care Association — Trump taps Pence to lead coronavirus response | Trump accuses Pelosi of trying to create panic | CDC confirms case of 'unknown' origin | Schumer wants .5 billion in emergency funds Trump nods at reputation as germaphobe during coronavirus briefing: 'I try to bail out as much as possible' after sneezes MORE on Thursday announced his intent to nominate Judy Shelton and Christopher Waller to be governors of the Federal Reserve Board after senators rejected several of his previous choices for the central bank.

The White House formally announced Trump’s decisions to nominate Shelton and Waller six months after the president declared his intent to appoint them in a July tweet. It is unclear if Trump has submitted the nomination to the Senate, which is the first step toward confirmation.

The GOP-controlled Senate is likely to approve both Shelton and Waller to be Trump’s fourth and fifth additions to the Fed board. Senators shot down Trump’s previous selections of former campaign advisor Stephen MooreStephen MooreHeritage analysts suggest tax-advantaged savings accounts for new Trump tax plan Trump administration weighing tax incentive for US households to invest in stock market On The Money: Trump adviser presses House to make Bezos testify | Kudlow says tax-cut proposal coming this fall | NY Fed says Boeing woes could hurt GDP | Delta aims to be first carbon neutral airline MORE and 2008 presidential candidate Herman CainHerman CainOn The Money: Trump adviser presses House to make Bezos testify | Kudlow says tax-cut proposal coming this fall | NY Fed says Boeing woes could hurt GDP | Delta aims to be first carbon neutral airline The Hill's Morning Report — AG Barr, GOP senators try to rein Trump in Republicans expect Trump to withdraw controversial Fed nominee MORE before they were formally nominated.

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Waller is the executive vice president and director of research at the Federal Reserve Bank of St. Louis. A career academic with no apparent red flags, Waller is widely seen as a safe pick to clear a friendly Senate.

Shelton, a former Trump campaign advisor and U.S. executive director of the European Bank for Reconstruction and Development, is more controversial.

Like Trump, Shelton had criticized the Fed under former Chair Janet YellenJanet Louise YellenOvernight Energy: Green group sues Trump over major environmental rollback | New fuel efficiency standard could take months to complete | Trump unveils picks for EPA, Energy deputies Coalition plan seeks to cut carbon emissions in half by 2035 On The Money: Democrats urge emergency funding for coronavirus | Kudlow says outbreak will have 'minimal impact' on economy | Top Dem demands Barr recuse himself from case against Turkish bank MORE for keeping interest rates close to zero while the during the recovery from the 2008 recession. But Shelton flipped her views on monetary policy after Trump’s election, echoing his call for the Fed to cut rates despite a surge of growth in 2018.

Shelton may also face skepticism from Republicans over her past support the gold standard and an international currency union. Neither idea is broadly supported by Democrats or Republicans.

Even so, Shelton’s past confirmation by the Senate and lack of baggage akin to Moore’s commentary and Cain’s alleged conduct toward women bode well for her confirmation.