President Donald Trump's latest picks to serve on the FederalReserve Board will challenge the long-standing notion that there isa trade-off between low unemployment and higher inflation,according to his chief economic adviser.

Trump last week said he intends to nominate Judy Shelton and St.Louis Fed research director Christopher Waller to serve on theFed's Board of Governors. Shelton's previous views on the goldstandard and her doubts about the central bank's mandates fromCongress to pursue stable prices and maximum employment have raisedconcerns among economists. She called the mandate “nebulousobjectives” in an interview with Bloomberg in May.

“We are challenging the Phillips Curve status quo,” LawrenceKudlow, National Economic Council director, told reporters Tuesday.“You betcha. I mean, I spent my whole career on that, and thepresident agrees with this, of course he agrees with this, soJudy's going to be a leader on that and so will Waller.”

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