As Jim Rickards points out, Trump will appoint a higher percentage of the Fed's board of governors than any president since Woodrow Wilson chose the original board.
Seven members make up the Federal Reserve's board of governors. Of course, regional reserve bank presidents also have some influence. But you find the real decision making power on the board. As of last week, four of the seven Fed board seats are vacant.
Consider the power this gives the president. Four seats makes up a voting majority.
Trump will own the Fed. Meaning, whatever the president wants monetary policy to be, he'll get. In other words, Donald Trump will be able to shape the Fed's majority. But the tricky part is figuring out how he plans to shape it."
As Rickards points out, Trump harped on China as a currency manipulator during the campaign, and signaled he wanted a weaker dollar. He certainly got that wish. The dollar has already dropped about 12% on the year, and it's on track for its worst year since 1985. That was the beginning of a decade long bear market for the dollar. Peter Schiff says he thinks this one will be worse.
I think this one is going to be the mother of all dollar bear markets, and I think the dollar is going to fall much further than it did in any prior bear market."
Peter has argued that investors fleeing the dollar has been a big factor in the recent gold bull run.