Vice Chair, Richard Clarita, Federal Reserve discussed on Marketplace All-in-One
Why you should care if someone new joins the Federal Reserve Board? I'm David Brancaccio in New York. I like to point out that the policy decision, the single policy decision that affects every woman man and child in America is when the fed changes the cost of borrowing by fiddling with interest rates. So it's relevant. I think to all of us when the Federal Reserve gets not just a new board member, but a new vice chair. Richard Clarita is was confirmed by the Senate yesterday he's an academic unlike fed chair. Jerome Powell marketplace's, Nancy. Marshall. Genzer has more Richard Clarita is managing director at depan firm pimco. He's also an economics professor at Columbia University. Clarita was an assistant Treasury Secretary during the administration of George W Bush. He's researched monetary policy, interest rates and exchange rates as fed vice chair. He'll be second in command to fed chair. Jerome Powell who has extensive experience in the financial markets, but not academe like pow Clarita is expected to support. It more interest rate hikes, which President Trump has said. He's not thrilled with chirp. Powell has said repeatedly that the fed makes interest rate decisions based on what's right for the economy, not politics, but President Trump will leave his Mark on the fed board. He'll appoint six out of seven members in his first term. Three of his nominees have been confirmed. Two more are waiting, and there's still one more open seat. Marketplace's, Nancy, Marshall genzer on the fed beat out of our Washington bureau. Now, let's do the gross domestic product. Yeah, there's news. The US economy grew at a four point, two percent annualized growth rates spring into summer. That's a slight upward revision of what was already a strong quarter. David, Kelly is chief global strategist at j. p. Morgan funds. He says, fine, but has his sights firmly on the current quarter is great to see a quarter of four point, two percent growth. I mean, basically the American economy's a tortoise. Now you had, you know, got this burst of sugar and did a bit of sprinting in the second quarter. We've got this four point, two percent growth, but when we look at what's going on in the third quarter, you know, housing starts is so down. Auto sales basically stole dad. So I think rose going to return to about two percent for the third quarter. So you know a little bit of a sprint out of the economy here, but I don't think it's gonna last since you stay. So essentially we should perhaps for guard the spring into summer quarter second quarter as kind of a fluke. Yes, I think so. I mean, we had some very weird trade numbers which which contributed a lot to this. Now we actually think the trades going to be a drag on the economy going forward. As as our imports go up more than our exports. So I think the economy is so down again, but that's okay. You know, this is an old expansion two. We're in its tenth year, so I really don't want the economy to run to house right now. If it did, we'd have more problems. All right. And we're in that second half David Kelly at j.p Morgan funds. Thank you. Anytime..