WASHINGTON — Thirty-eight House Democrats sent a letter to President Trump on Wednesday voicing their concern that Wall Street insiders will be appointed to top spots at the Federal Reserve Board.
Most important among the positions is the Federal Reserve vice chairman for supervision, a post created by the Dodd-Frank Act and nominally filled by former Fed Gov. Daniel Tarullo, although he was never officially tapped for the job.
Trump has reportedly settled on Utah investor and former Treasury official Randal Quarles for the role. House Democrats objected to Quarles, citing his banking ties and expressing concern that he will relax regulations.
“Longtime Wall Street investment banker Randal Quarles, your reported candidate … is precisely the wrong choice, as he is a vocal opponent of the regulations that are necessary to prevent another economic catastrophe,” the letter said.
“As you continue to fill positions at key agencies such as the Federal Reserve," it said, "we urge you to consider whether the candidates have a background of promoting widespread job creation and wage growth, or whether they have followed a dangerous approach sought by Wall Street that has harmed working families in the past."
The Fed board currently has three open slots that Trump will be able to fill and Fed Chair Janet Yellen’s term expires in early 2018, which will offer Trump an opportunity to nominate a new chair.
The House Democrats also asked that Trump tap Fed governors that are committed to the “maximum employment” part of the Fed’s “dual mandate” that includes balancing job growth and inflation.
The Senate is charged with confirming presidential appointees to the Fed, but Democrats' power to stop nominations is limited. The minority party in the Senate no longer has the power to filibuster nominees.
Rep. John Conyers, D-Mich., was the lead signee on the House letter.