Richard Clarida, longtime economics professor at Columbia University, has been tapped by President Donald Trump to be vice chairman of the Board of Governors of the Federal Reserve System.
The Fed board now has only three serving members, two of whom are Trump appointees, allowing him the unprecedented opportunity to select all but one of the board's seven members.
The White House announced Trump's intent to nominate the two on Monday.
Both nominations would be subject to Congressional approval.
Trump will also name Michelle Bowman, the Kansas bank commissioner, to a spot on the Fed's Board of Governors reserved for a community banker or community bank regulator.
Dr. Clarida is a managing director in the NY office and PIMCO's global strategic advisor.
The Deutsche Bank economists Peter Hooper and Matthew Luzzetti praised the decision to nominate Clarida, describing him as a positive for the Fed's handling of the economy.
Fed Chair Jerome Powell, who was originally named to the board by former President Barack Obama, sailed through the Senate confirmation process and replaced Janet Yellen in February.
The vice chairman of the Federal Reserve Board is one of seven members, or "governors", who comprise the Fed's governing body, which oversees all Federal Reserve banks. He has 20 years of investment experience and holds a Ph.D.in economics from Harvard University. He could face difficulty in the full Senate amid strong opposition from Democrats who have expressed unhappiness with Goodfriend's past support for moves that would limit the Fed's independence. In articles written for PIMCO, Clarida has outlined views largely consistent with current Fed policy. Dudley's position will be filled by John Williams, another PhD economist who is now head of the San Francisco regional Fed bank.