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Illustration: Lazaro Gamio/Axios

It's a strange Trumpian irony that the president is so upset with the Federal Reserve, because he picked many of its current members.

Why it matters: If officially nominated and confirmed, pundit Stephen Moore and former CEO and presidential candidate Herman Cain would put 6 Trump nominees out of 12 voting members on the Federal Open Market Committee. But his previous nominees haven't been like Moore and Cain.

Trump replaced Janet Yellen, known as a policy dove who favored lower U.S. interest rates, with Jerome Powell, a lawyer with significant Fed experience who was considered more of a rate hiking hawk.

  • Trump also replaced outgoing vice chair Stanley Fischer with Richard Clarida and has already nominated Randal Quarles, Marvin Goodfriend, Nellie Liang and Michelle Bowman to the Fed. (Goodfriend's nomination expired when the last Congress expired and Liang removed herself from consideration.)

"Trump so far has picked a moderate as Fed chair, and the rest of his nominees include two hawks, one unknown, and one moderate dove," Adam Ozimek, an economist at Moody's wrote last year when Trump first began making the case for lower rates. "If you wanted rates to stay lower for longer, why would your nominees look like this?"

The big picture: All of them are well-respected economic professionals, and normally that would be enough.

  • "If Trump were a normal president, appointing highly regarded individuals who can ensure effective policy making would be business as usual," Kenneth Rogoff, a professor of economics at Harvard and a previous IMF chief economist, wrote in 2018.
  • "But here is a president who has often chosen officials with little government experience, and then seems to task them with creating the most disruption possible in the departments they are selected to run."

So, why the change? I suspect it's because Trump doesn't understand monetary policy but realizes the economy isn't going to grow the way he promised on the campaign trail and may even fall into recession, so he's setting the Fed up as a scapegoat.

The bottom line... Axios' Jonathan Swan tells me via email that it's much simpler: "People close to the president say Trump is pissed at Powell and views the Powell-led Fed as the biggest threat to markets and the economy. So he’s throwing some bombs into the building."

Go deeper

In photos: Protests outside fortified capitols draw only small groups

Armed members of the far-right extremist group the Boogaloo Bois near the Michigan Capitol Building in Lansing on Jan. 17. About 20 protesters showed up, AP notes. Photo: Seth Herald/AFP via Getty Images

Small groups of protesters rallied outside fortified statehouses over the weekend ahead of President-elect Joe Biden's inauguration Wednesday.

The big picture: Some protests attracted armed members of far-right extremist groups but there were no reports of clashes, as had been feared. The National Guard and law enforcement outnumbered demonstrators, as security was heightened around the U.S. to avoid a repeat of the Jan. 6 U.S. Capitol riots, per AP.

5 hours ago - Politics & Policy

Trump to issue at least 100 pardons and commutations before leaving office

Photo: Mandel Ngan/AFP via Getty Images

President Trump plans to issue at least 100 pardons and commutations on his final full day in office Tuesday, sources familiar with the matter told Axios.

Why it matters: This is a continuation of the president's controversial December spree that saw full pardons granted to more than two dozen people — including former Trump campaign chair Paul Manafort, longtime associate Roger Stone and Charles Kushner, the father of Trump's senior adviser and son-in-law, Jared Kushner.

  • The pardons set to be issued before Trump exits the White House will be a mix of criminal justice ones and pardons for people connected to the president, the sources said.
  • CNN first reported this news.

Go deeper: Convicts turn to D.C. fixers for Trump pardons

Schumer's m(aj)ority checklist

Senate Minority Leader Chuck Schumer. Photo: Tasos Katopodis/Getty Images

Capitalizing on the Georgia runoffs, achieving a 50-50 Senate and launching an impeachment trial are weighty to-dos for getting Joe Biden's administration up and running on Day One.

What to watch: A blend of ceremonies, hearings and legal timelines will come into play on Tuesday and Wednesday so Chuck Schumer can actually claim the Senate majority and propel the new president's agenda.