Trump set to tap former top Fed aide to central bank’s board

Trump set to tap former top Fed aide to central bank’s board

President Donald Trump announced he intends to nominate Nellie Liang, a 31-year veteran of the Federal Reserve staff, to an open seat on the central bank’s board.

Liang, a Ph.D. economist and reportedly a registered Democrat, was the first head of the Fed’s office of financial stability from 2010 to early 2017. She gave key input into the development of the central bank’s post-crisis regulations and conducted extensive research into the interaction between interest rate policy and financial stability.

Her selection comes at a time when the Fed is watching closely to see whether an extensive period of low interest rates has led to a buildup in risks in the financial system. She would be the first minority woman on the Fed board.

When Liang is nominated, Trump will have put forward candidates for all the vacancies on the Fed’s seven-member board. Richard Clarida was sworn in this week as vice chairman, and Michelle Bowman and Marvin Goodfriend are pending before the Senate floor for two other Fed seats.

Liang began her career at the Fed in 1986 in the division of research and statistics. Since leaving the central bank in 2017, she has been a fellow at the Brookings Institution, a centrist think tank that is also home to former Fed chairs Ben Bernanke and Janet Yellen. She has also done work for the International Monetary Fund.

She received her undergraduate degree from Notre Dame and her Ph.D. from the University of Maryland.

Her selection was earlier reported by The Wall Street Journal.