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Obama seeks win with bipartisan Fed choices

Wednesday, December 28, 2011 - 02:51

Dec. 27 - Reuters Fed correspondent Pedro da Costa says President Obama wants to avoid earlier failures in Congress with Fed appointees by offering a Republican and a Democrat candidate to the bank's board.

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President Obama has gone bipartisan in his picks for the Fed board selecting a Republican and a Democrat. For more is Reuters that correspondent -- that constant Washington well your. Jeremy Stein teaches economics at Harvard any formally served in the Obama administration. You see him -- -- pitfalls. It's hard to know exactly where his leanings -- as far as policy is concerned but we do know that he wrote a Paper recently about. How to conduct monetary policy at the zero balance of that suggests that -- at least be theoretically supportive of the Fed's QE policy so far. And his work also fills a gap in economics which is that it -- the financial side the markets. 22 macro economics and I think that's that's a gap that the Fed has been very. Very forceful about wanting to -- I guess the as the -- stable economists who are on the board on Jerome Powell on the other hand brings Wall Street experience he formally served. In the treasury department of the Republican administration George H. W. Bush what impact might have what does he bring it. That's right the bulk of his career from between 1997 and 2005 was spent that Carlyle group the large private equity firm and so. I would see him as sort of replacing Kevin wore shoes of former Morgan Stanley executive. You know he's going to be the guy with banking experience. So when you have that that Sunday night phone calling and people are talking about. Complicated derivatives and and counter parties he's going to be the guy and phone because he's probably the one with the closest gated knowledge of operational markets at this point any expectations that there might be running because he's a Republican. -- when -- debate Paulson. I don't think so that that not internally the Fed is is very sort of tries at least to be very apolitical -- approach settle I don't see any internal strife in fact I think that. Obama's effort to nominate both a Democrat and Republican. Is an attempt to overcome some of the opposition that a prior nominee Peter diamond -- so I think -- stripe -- To make it more difficult for Republicans to make noise about these these choices and it's early in the ball game -- any sense. -- to whether these two nominations will make -- -- either lean more dovish or pocket. It's hard to say you know with new board members. They don't tend to descend very loudly and so I wouldn't expect it. To have any major impact but if you. If you count the additional board nominees is potentially voting alongside with. The chairman of the core of the committee. Then it at the margin in my make the committee slightly more dovish thanks lot better for your thoughts. Our thanks to Reuters had at a cost than Washington I'm Fred Katayama and this is --

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Obama seeks win with bipartisan Fed choices

Wednesday, December 28, 2011 - 02:51