Question

You have just been elected president of the United States, and the present chair of the Federal Reserve Board has resigned. You need to appoint a new person to this position, as well as a person to chair your Council of Economic Advisers. Using Table 19.1 and your knowledge of macroeconomics, identify the views on macro theory and policy you would want your appointees to hold. Remember, the economic health of the entire nation—and your chances for reelection—may depend on your selection.

Short answer

The president will appoint the chairperson to support an active fiscal and monetary policy to improve the economy’s health and help put the president in office again.

Step-by-step solution

Explanation

The appointment of chairs for the Federal Reserve Board and Council of Economic Advisor will depend on the interest groups who had supported putting the president in office.

The president will probably appoint the economists who advocate an active fiscal and monetary policy to maintain the good health of the economy as well as serve the interest groups also.

For instance, the major contributors to the Democratic party (President Joe Biden) campaigns for the 2020 elections were industrialists. The president signed an executive order to repair the supply chains of pharmaceuticals, metals, and technologies, especially to recover from the covid crisis and prepare the economy for self-reliance.

The president is most likely to appoint the economists who would support an active fiscal policy to support the industries in improving the supply chain, employment, and improving the economy from the financial crisis of covid.