The Federal Reserve, the world’s most influential central bank, is undergoing significant changes under the leadership of President Donald Trump. Despite not removing Chairman Jerome Powell from his position, the administration is quietly reshaping the institution. Trump and his key advisors have hinted at these modifications, which are now beginning to materialize.

One notable alteration is the nomination of Judy Shelton and Christopher Waller to the Federal Reserve Board of Governors. Shelton, known for her unorthodox views on monetary policy, has advocated for a return to the gold standard and expressed skepticism about the Fed’s independence. Waller, a more conventional pick with a background in research and economics, is expected to bring stability to the board.

These appointments signal a potential shift in the Fed’s decision-making processes and policy direction. Shelton’s nomination in particular has raised concerns among some economists and policymakers due to her unconventional monetary policy proposals. However, supporters argue that diverse perspectives on the board can lead to more robust discussions and better-informed policy choices.

While the changes at the Federal Reserve may not be as headline-grabbing as a direct ousting of the chairman, they have the potential to have a lasting impact on the institution’s operations and policy decisions. It remains to be seen how these new appointments will influence the Fed’s approach to managing the country’s monetary policy and economic stability in the coming years.

Experts in the field emphasize the importance of maintaining the Fed’s independence and credibility in executing its mandate effectively. The evolving composition of the Board of Governors under the Trump administration underscores the ongoing transformation within the Federal Reserve, which plays a crucial role in shaping the country’s economic landscape.