Trump continues reshaping the Fed and picks a new second-in-command

  • President Donald Trump announced Monday that economist Richard Clarida will be the Federal Reserve's next vice chairman.
  • Trump also nominated Michelle Bowman, Kansas' top banking regulator, to the Fed's Board of Governors.
  • The selections continue Trump's transformation of the nation's central bank.

President Donald Trump will select economist and professor Richard Clarida to serve as Federal Reserve Vice Chairman, the White House announced on Monday.

Clarida will replace Stanley Fischer as Vice Chair. Fischer announced his retirement in September after serving as vice chairman for roughly three and a half years.

Clarida is currently an economics professor at Columbia University and is a managing director at investment giant PIMCO. In addition to academic appointments, Clarida served as a staff economist on the Council of Economic Advisers under President Ronald Reagan from 1986 to 1987, as an assistant secretary for economic policy at the Treasury from 2002 to 2003, and as an adviser at the Federal Reserve Bank of New York from 1991 to 1992 and 1995 to 1997.

Global strategic advisor Richard Clarida

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Global strategic advisor Richard Clarida
Richard Clarida, global strategic advisor and managing director of Pacific Investment Management Co. (PIMCO), speaks during the UBS CIO Global Forum at the Beverly Wilshire Hotel in Beverly Hills, California, U.S., on Tuesday, June 28, 2016. The forum are sources experts from all regions of the world to address regional issues affecting global markets. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
Richard Clarida, global strategic advisor and managing director of Pacific Investment Management Co LLC (Pimco), listens during a Bloomberg Television interview in New York, U.S., on Thursday, Oct. 29, 2015. Clarida disscussed the economic impact of China ending its one-child policy and how demographics affect the nation's growth. Photographer: Chris Goodney/Bloomberg via Getty Images
Richard Clarida, managing director of Pacific Investment Management Co. (PIMCO), speaks during a Bloomberg Television interview in New York, U.S., on Friday, March 24, 2017. Clarida discussed reflation trade. Photographer: Christopher Goodney/Bloomberg via Getty Images
Richard Clarida, managing director of Pacific Investment Management Co. (PIMCO), listens during a Bloomberg Television interview in New York, U.S., on Friday, March 24, 2017. Clarida discussed reflation trade. Photographer: Christopher Goodney/Bloomberg via Getty Images
Richard Clarida, executive vice president of Pacific Investment Management Co. (PIMCO), gestures during the Institute Of International Finance (IIF) spring meeting in London, U.K., on Thursday, June 5, 2014. Inflation in the euro area slowed to 0.5 percent in May, matching the lowest in more than four years. Photographer: Simon Dawson/Bloomberg via Getty Images
Richard Clarida, global strategic advisor and managing director of Pacific Investment Management Co. (PIMCO), right, speaks as Mike Ryan, chief investment strategist of wealth management for the Americas at UBS Financial Services Inc. listens during the UBS CIO Global Forum at the Beverly Wilshire Hotel in Beverly Hills, California, U.S., on Tuesday, June 28, 2016. The forum are sources experts from all regions of the world to address regional issues affecting global markets. Photographer: Patrick T. Fallon/Bloomberg via Getty Images
Richard Clarida, managing director of Pacific Investment Management Co. (PIMCO), listens during a Bloomberg Television interview in New York, U.S., on Thursday, July 27, 2017. Clarida said the U.S. inflation picture can turn on a dime. Photographer: Christopher Goodney/Bloomberg via Getty Images
UNITED STATES - APRIL 20: Richard Clarida, Former Assistant Treasury Secretary for Economic policy and Professor of Economics and International Affairs at Columbia University, speaks during a panel discussion on 'The Role of Financial Markets in Sustaining Economic Growth in Asia' held in the Citigroup building in New York Tuesday, April 20, 2004. (Photo by Zack Seckler/Bloomberg via Getty Images)
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In addition to naming Clarida to the post, Trump will also name Kansas Bank Commissioner Michelle Bowman to a spot on the Fed board. Bowman's seat is reserved for a community banker or community bank regulator.

The moves continue Trump's reshaping of the Federal Reserve, which has seen a high level of turnover over the past two years. In addition to Fischer's retirement, Trump also selected Jerome Powell to take over for Janet Yellen as the Fed chair and Randal Quarles to serve as vice chair for supervision.

There are still two more open board seats, even after Monday's nominations, and another of Trump's picks, Marvin Goodfriend, is still awaiting Senate confirmation despite being narrowly approved by the Senate Banking Committee in February.

In addition to the Fed announcements, Trump also nominated Dan Michael Berkovitz to be a commissioner at the Commodity Futures Trading Commission (CFTC). The CFTC is the main US regulator for futures and options trading. Berkovitz was general counsel for the CFTC from 2009 to 2013.

Trump's pick for CFTC chairman, Chris Giancarlo, along with two other commissioners were all confirmed in August

Clarida, Bowman, and Berkovitz must be confirmed by the Senate before taking their respective roles.

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