Economics

Fed Shouldn't Be Trade-War Burden, Possible Fed Nominee Says

  • Central bank hinting it could cut rates, Shelton says
  • Economist speaks in interview with Bloomberg Television
Possible Fed nominee Judy Shelton says monetary policy should support a pro-growth agenda.(Source: Bloomberg)
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Judy Shelton, a conservative economist whom the Trump administration is considering for a vacancy on the Federal Reserve, said the central bank should avoid restraining growth while the U.S. is engaged in a trade war with China.

“China is able with its state-controlled apparatus to bring everything to bear” including intervening in currency markets and fiscal stimulus, Shelton said Wednesday in a Bloomberg Television interview with David Westin. “I wouldn’t want the Fed to be a burden and to do the wrong thing at this time and undermine some of the good growth prospects that we have ahead of us.”