The Fed: Wall Street regulator resigns
The Federal Reserve’s “point man” on regulation is stepping down, said Renae Merle in The Washington Post. Federal Reserve governor Daniel Tarullo announced last week that he would resign in April, “nearly five years before the end of his term.” He didn’t explain the reason for his departure. Tarullo, appointed to the Fed in 2009 by then-President Obama, helped push tough policies intended to prevent a repeat of the financial crisis, including stricter capital requirements for banks to cushion against possible emergencies. His departure leaves three openings on the Fed’s seven-member board, giving President Trump the opportunity to dramatically reshape the central bank.
It’s rare for a president to have this much “immediate influence” on the Federal Reserve, said Rob Garver in TheFiscalTimes.com. Governing board members are appointed to 14-year terms, with one expiration every two years, meaning turnover is usually slow. But a fourth seat could soon be open. The Fed chairmanship rotates on a four-year basis, with Janet Yellen’s term ending next year. Although Yellen’s membership on the board doesn’t expire until 2024, it’s possible she will retire if she isn’t reappointed chair. “In theory at least, by this time next year, a majority of the members of the Fed board could be Trump appointees.”