Reinhart on Who Trump Could Appoint to Fed

The transcript discusses potential candidates for the Federal Reserve chair under a Republican administration, focusing on their monetary policy preferences. It highlights Donald Trump's unconventional approach to Fed appointments and the implications of his real estate background on interest rate preferences. The impact of Fed chair decisions on the economy and markets is explored, along with the challenges in Fed communication and its effect on interest rate projections. The discussion concludes with an analysis of economic growth, unemployment, and the Fed's role in managing aggregate demand.

Which of the following is NOT mentioned as a potential candidate for the Federal Reserve chair under a Republican administration?

• Kevin Wash

• Janet Yellen

• Glenn Hubbard

• John Taylor

What is a key concern for the Secretary of Treasury and economic advisers regarding the Fed chair nomination?

• Rolling the dice with an unconventional pick

• Choosing a candidate with no market experience

• Appointing someone with aggressive monetary policies

• Selecting a candidate from the opposition party

What is the main focus of the Federal Reserve's communication strategy?

• To influence foreign monetary policies

• To describe the majority's policy decision

• To intentionally confuse the market

• To provide clear and precise guidance

What is a potential outcome of the Federal Reserve's communication challenges?

• Wider range of economic projections

• Increased market stability

• Clearer policy decisions

• Decreased interest rate volatility

What is a significant economic challenge mentioned in relation to unemployment and aggregate demand?

• Excessive foreign investment

• Low productivity growth

• Rapid technological advancement

• High inflation rates

Which of the following is NOT a suggested method to increase aggregate supply?

• Productivity improvements

• Labor force expansion

• Increased immigration

• Higher interest rates

What might the Federal Reserve worry about if aggregate demand exceeds aggregate supply?

• Deflationary pressures

• Demand-driven inflation

• Currency devaluation

• Increased unemployment