Federal Reserve Board of Governors nominees Stanley Fischer and Lael Brainard both support extending the central bank’s hands-on role in managing the economy, Reuters reported Monday.
Howard Schneider and Michael Flaherty write the two nominees will likely call for more powers for the Fed to ensure permanent active participation in cases of financial crisis or overacting asset markets.
Reuters cited past statements from both Fischer, a former Bank of Israel governor, and Brainard, a former U.S. Treasury official, who historically have pushed for aggressive action to tackle a problem.
According to the report, Fischer helped deal Israel deal with a property bubble and Brainard played a lead role in conveying U.S. policy concerning the Euro zone crisis.
Schneider and Flaherty write that many investors are particularly interested in how the two new nominees will influence the Fed’s 2008-era near-zero interest rate policy.
“What Fischer can bring to the table is some very valuable practical experience guided by a strong analytical framework,” David Stockton, former research director at the Fed and now senior fellow at the Peterson Institute for International Economics, told Reuters.
The report said former colleagues of Brainard shared similar sentiments about the former Treasury official and described her as a tough and assertive negotiator and infighter.
