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WASHINGTON – President Trump will appoint Nellie Liang, a former Federal Reserve economist who created her first financial stability board, to the central bank's board of governors, the White House announced Wednesday.
In 2010, Fed Chairman Ben Bernanke called Ms. Liang to head the office to oversee the risks in the financial system following the 2008 crisis. Today, this operation is as important as the division of monetary affairs of the Fed for a long time.
Ms. Liang joined the Fed in 1986 as a research economist and left the central bank in 2017. Since then, she has been a senior fellow at the Brookings Institution in Washington, DC and a consultant to the International Monetary Fund. Ms. Liang is a registered Democrat.
In early 2009, Ms. Liang participated in the first round of stress testing of government banks that helped dispel market fears about the resilience of America's largest banks.
Last year, she rejected criticism that the Fed's particularly easy monetary policies after the financial crisis had hurt the banking sector and weakened the financial system.
"The data indicates that extraordinary monetary policies have improved financial stability, including bank resilience, and have not undermined it," she said in a speech at the American Enterprise Institute.
Ms. Liang, 60, received her doctorate from the University of Maryland and her undergraduate degree in economics from the University of Notre Dame.
Ms. Liang did not respond to messages asking for comments on Wednesday. A spokeswoman for the Fed declined to comment.
Mr. Trump has named five other personalities in the seven seats of the Fed. Three were confirmed by the Senate: President Jerome Powell, Vice President Richard Clarida and Randal Quarles, Vice President of Banking Supervision.
The Senate has yet to confirm two other candidates. These are Marvin Goodfriend, an economist at Carnegie Mellon University, and Michelle Bowman, Kansas's banking commissioner.
With the appointment of Ms. Liang, Mr. Trump will no longer have vacant vacancies until 2020 if the Senate confirms all of his nominees.
Trump expressed concern this summer with the Fed's recent short-term rate hikes. The central bank raised its benchmark rate in June to between 1.75% and 2% and is expected to raise it by a quarter point at its two-day meeting next week.
Trump has widely named Fed candidates who are seen as non-ideological and pragmatic political agents. Messrs. Powell and Quarles served in the Treasury Department under the chairmanship of George H. W. Buisson. Messrs. Clarida and Quarles served in the Treasury for President George W. Bush.
Write to Nick Timiraos at [email protected] and Michael C. Bender at [email protected]
Published in the print edition of September 20, 2018 under the title "Trump to Nominate Economist to the Fed".
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