On 16 April 2018, President Trump nominated Dr. Clarida to become the next vice chairman of the U.S. Federal Reserve.
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.
Clarida will serve as the vice chairman of the Fed for a four-year term, according to a statement released by the White House on Monday, Xinhua news agency reported.
While Trump was highly critical of the Fed during the 2016 presidential campaign, his selections for Fed jobs so far have come from mainstream economists rather than the ranks of conservative economists who have been highly critical of the central bank's actions in the wake of the 2008 financial crisis. Both nominations need Senate approval.
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.
Trump past year tapped Fed board member Jerome Powell to succeed Janet Yellen as Fed chairman.
Clarida is now an economic professor at the Columbia University, as well as managing director and global strategic adviser at Pacific Investment Management Co. He has 20 years of investment experience and holds a Ph.D.in economics from Harvard University.
There are still two more open board seats, and another of Trump's picks, Marvin Goodfriend, is still awaiting Senate confirmation despite a narrow approval by the Senate Banking Committee in February.
In his previous speeches and interviews, Clarida was largely supportive of policy decisions by former Fed chair Janet Yellen, whose gradual approach to tighten monetary policy was also inherited by current Fed chair Powell. Dudley's position will be filled by John Williams, another PhD economist who is now head of the San Francisco regional Fed bank.