Trump Nominates Gold Advocate Judy Shelton For The Fed

Trump nominated Judy Shelton, a gold standard advocate, for the Fed. She faces an uphill battle.

Could Trump's Next Fed Chair Be A "Goldbug?"

Judy Shelton is an American economic advisor to President Donald Trump. She is known for her advocacy for a return to the gold standard and for her criticisms of the Federal Reserve.

The Mises Institute asks Could Trump's Next Fed Chair Be A "Goldbug?"

This week, Donald Trump formally nominated Judy Shelton and Christopher Waller for vacant governorships on the Federal Reserve. Waller, the Vice President of the Richmond Fed, is widely viewed as a standard Fed nominee with the reputation of being a "dove" who has criticized recent interest rate hikes. It is Judy Shelton who is particularly interesting.

A former campaign adviser for Trump, Shelton has been a vocal Fed critic who has praised the gold standard in the past. While she has recently advocated for lower interest rates, she has also been a critic of the Fed's policy of paying interest on excess reserves that has become a key policy tool since 2008. Shelton's nomination is also interesting due to her background standing in stark contrast to most of her colleagues.

The bad news is that she leans heavily toward supply-side economics, which is deeply flawed on monetary policy. Like most supply-siders, the position she advocates may be summed up in the motto, “I favor sound money—and plenty of it.”

Still, though by no means an Austrian, Shelton's voice on the Fed would create some much needed ideological diversity to the central bank.

Shelton Slams Bank’s ‘Soviet’ Power Over Markets

Please consider Shelton Slams Bank’s ‘Soviet’ Power Over Markets

How can a dozen, slightly less than a dozen, people meeting eight times a year, decide what the cost of capital should be versus some kind of organically, market supply determined rate? The Fed is not omniscient. They don’t know what the right rate should be. How could anyone?” said Shelton.

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