Potential Fed nominee Judy Shelton believes that there should be a change in the way the Federal Reserve sets interest rates for the financial markets.
Shelton, who is already an economic advisor to President of US Donald Trump, has been frequently mentioned as a potential Fed governor candidate. If she happens to receive the nomination and gets confirmed, Shelton said that she would bring in a distinct perspective to the way interest rates are laid.
What bothers her most is the mechanism in which the central bank operates, Sheldon said during a The Wall Street Journal interview. Discussions regarding whether the rates should be raised or dropped, she added.
The Federal has been constantly criticized for utilizing models such as Phillips curve in order to know where the rates should stay at. In fact, even Trump said that the rates are extremely high and has blamed Fed for withholding the economic growth of the nation. The markets also are pricing a high due to a rare cut occurring before 2019 end, though the Federal Bank officials have remained unanimous in saying that they are comfortable with the present policy.
Notably, an official of White House has said that there are no nominations planned as yet. Recently, Trump saw withdrawal of the 2 people that he wished to nominate, Herman Cain and Stephen Moore, following various controversies.
