Trump Fed nominee signals skepticism on QE

WASHINGTON: Even as US Federal Reserve Board nominees Richard Clarida and Michelle Bowman on Tuesday pledged their best efforts toward achieving the US central bank´s twin goals of full employment and low inflation, one appeared hesitant on a key Fed tool used in the past to attain them.

“I will support monetary policies that take a balanced approach to achieving (the Fed´s) important objectives,” said Clarida, an economist who advises fund manager Pimco, at the start of a nomination hearing before the Senate Banking Committee. But asked about the Fed´s bond-buying programs, known as quantitative easing, Clarida sounded skeptical.

It was among few points of contention in what was largely a drama-free hearing for both nominees, in contrast to the hearing of President Donald Trump´s other pending pick for the Fed, Marvin Goodfriend, whose nomination has since stalled in the Senate.