The essential
Donald Trump will be sworn in as US President on 20 January. With the Republicans in Congress, he will try to set radical reforms, in particular about the Fed.
In 2017, the Fed will enter an area of turbulence. The nominations that Donald Trump will make will greatly change the balance of power within the FOMC. The debates will mainly be about the necessity and the relevance of a Taylor rule. Furthermore, FOMC members don’t know where they stand on the probability of fiscal stimulus measures. Last, we think that an acceleration of the fed funds normalization at this stage of the cycle would be counterproductive. |
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The Article
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L'Article
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The FOMC composition in 2017 In normal times, there are 12 voters at FOMC meetings (the last time they were 12 voters was in July 2013):
Currently, there are only 5 members in the Board as the Senate blocked Obama’s appointments. Donald Trump will pick 2 Board members. There are also rumours of Daniel Tarullo’s retirement and in this case, Donald Trump would have to pick 3 Board members. Appointments will have to be confirmed by Senate. The four voting Reserve Bank presidents in 2017 will be :
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