Trump Has Unprecedented Power to Remake the Fed

Trump Has Unprecedented Power to Remake the Fed
AP Photo/Andrew Harnik, File

The Federal Reserve Board is the most powerful economic institution in the world.

And given that power, it was designed so that any single president wouldn't have too much influence over it. Fed governors have staggered 14-year terms, which means that a president should only be able to appoint a new member to the board every two years.

That design is busted.

President Trump could appoint five people to the seven-member Supreme Court of money in his first year. That's not counting his nomination of Jerome Powell, who was already sitting on the board as a governor, as chairman. He is to replace Janet L. Yellen, who gives her final news conference on Wednesday.

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