Trump continues reshaping the Fed and picks a new second-in-command

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Donald Trump

• President Donald Trump will pick economist Richard Clarida to be the Federal Reserve's next vice chair.
• Trump is also set to nominate Michelle Bowman, Kansas' top banking regulator, to the Fed's Board of Governors.
• The selections continue Trump's transformation of the nation's central bank.

President Donald Trump will select economist and professor Richard Clarida to serve as Federal Reserve Vice Chair, a White House official told Business Insider.

The decision to choose Clarida to replace Stanley Fischer as Vice Chair is expected to be announced Monday. Fischer announced his retirement in September.

Clarida is currently an economics professor at Columbia University and is a managing director at investment giant PIMCO. In addition to academic appointments, Clarida served as a staff economist on the Council of Economic Advisers under President Ronald Reagan from 1986 to 1987, as an assistant secretary for economic policy at the Treasury from 2002 to 2003, and as an adviser at the Federal Reserve Bank of New York from 1991 to 1992 and 1995 to 1997.

In addition to naming Clarida to the post, Trump will also name Kansas Bank Commissioner Michelle Bowman to a spot on the Fed board. Bowman's seat is reserved for a community banker or community bank regulator.

The moves continue Trump's reshaping of the Federal Reserve, which has seen a high level of turnover over the past two years. In addition to Fischer's retirement, Trump also selected Jerome Powell to take over for Janet Yellen as the Fed chair and Randal Quarles to serve as vice chair for supervision.

Both Clarida and Bowman must be confirmed by the Senate before taking their respective roles.