Trump vs FRB Subtle signals?
Trump set to make first moves at completely revamping the Federal Reserve
Trump is expected to nominate Randal Quarles and Marvin Good friend to two of three vacancies at the central bank.
The moves come as the Fed prepares to raise interest rates again and start unwinding its $4.5 trillion balance sheet.
Federal Reserve Board Chairwoman Janet Yellen
Is apolitical Fed sending White House subtle signals?
President Donald Trump appears ready to remake the Federal Reserve in an image that will be considerably different than what investors have known for many years.
Trump will have the opportunity to name one more person now, then can fill two even more critical vacancies in 2018 — that of Chair Janet Yellen and Vice Chair Stanley Fischer.
If the Quarles and Goodfriend moves are indicators of what's to come, things could start getting less comfortable for Yellen.
Both are considered solidly conservative, in line with the Republican president and Congress but perhaps not with Yellen.
"Clearly, these appointees are a significant departure from the crowd that we've had on the board," said Christopher Whalen, head of Whalen Global Advisors and a former investment banker and long-time financial analyst.
"Yellen is probably the most left-wing Fed chair we've ever had. I also think both Quarles and Goodfriend have much better grounding in the financial markets. That would be refreshing."
Yellen, however, may not think so, particularly if the coalition she has carefully crafted since taking the chair's seat in 2014 starts to unravel.