FIRST AIRED: December 3, 2016

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00:00:01
>> With unemployment hitting the lowest since the financial crisis, the US economy is finally showing the kind of muscle the Federal Reserve's been looking for. But that's not likely to stop big changes from coming to the most powerful Central Bank of the world under the incoming Trump administration, starting with who sits around the Fed's table, including Janet Yellin, who Trump, while on the campaign trail, accused of keeping rates low to benefit Democrats.
00:00:27
Reuters Fed correspondent, Howard Schneider.>> There's seven members of the Board of Governors, right? There's two open seats right now that he can fill right away. Then you've got Chair Janet Yellen's Chairmanship expiring in early 2018, and Stanley Fischer's Vice Chairmanship expiring in early 18. Protocol is if he doesn't want to report them, they would both leave their leadership spots and leave the board.
00:00:53
That gives them two more, so we're already up to a majority, four out of seven.>> And a fifth seat could open up if Daniel Tarullo, the current guy in charge of the Fed supervision of banks, is passed over for promotion and decides to leave. That would give Trump more sway through appointees who are likely to share his team's dislike for Wall Street reform.
00:01:14
>> They wanna repeal some of the Dodd-Frank stuff, maybe not. Repeal's too strong a word, perhaps roll it back, change it, modify it, loosen it up. They feel it's leaning too heavily on banks. If you talk to Fed officials about what they're proudest of over the last ten years of work since the financial crisis, regulation and safety and soundness, a stronger, more resilient financial system, that is top of the list.
00:01:36
>> If Trump's plans to cut taxes and boost spending sends the economy into overdrive too fast, the Fed's pledge to gradually raise interest rates will be in jeopardy, too.