Trump's nominee for vice chairman of the Federal Reserve is Richard Clarida, who is currently an economist at Columbia University's School of International and Public Affairs. Clarida's nomination has arrived at a moment in the Fed's history where normalizing policies are being implemented to help the domestic economy transition away from more extreme measures taken post-crisis. One instance of this normalizing policy can be seen in the Fed's gradual interest rate hikes, the most recent of which has been a quarter point hike, marking the sixth such increase since December 2015.

Onlookers view Clarida's scholarship expertise in monetary policy as a complementary set of skills that will allow him to compensate for the weaknesses of the current secretary, Jerome H. Powell, who lacks academic expertise. Clarida's specific focuses include exchange rates, inflation, and optimal monetary policy. In the past, Clarida has been supportive of Janet Yellen's decisions to gradually raise interest rates post-crisis, while simultaneously shrinking the Fed's massive portfolio of bonds and assets that swelled during stimulus campaigns immediately post-crisis.

If Clarida's nomination receives Senate confirmation, he will join a powerful group of three leaders, Powell and John C. Williams, already within the Fed. Many onlookers are confident that Clarida's background and relatively "conventional," pragmatic past stances are indications that he is unlikely to radicalize the bank's approach with ideology. Furthermore, onlookers cite Clarida's powerful combination of academic expertise and wide-reaching market experience via his position as global strategic advisor for Pimco (PHK  ) as predictors that he will be an excellent fit at the job. Clarida's time serving as a Treasury official during George W. Bush's administration also provides him with ample government experience.

The more liberal groups have, in contrast, tended to view Clarida's selection with trepidation. Labor coalitions like the Fed Up campaign wish to ensure that Clarida is fully committed to the Fed's full employment mandate and bank regulation, to avoid another disastrous crash. Likewise, other liberal groups have voiced dissatisfaction with the addition of another white male member to the Fed. For these groups, each open spot on the Fed presents an opportunity to cultivate a more diversity-minded culture within the institution.