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Former FDIC Chair Bair: Expect different Fed environment under Trump

President-elect Donald Trump's potential appointments to the Fed's Board of Governors could mark a stark shift from the banks current policy environment, according to Former FDIC Chair Sheila Bair on Monday.

"Whether the current Feds [are] going to be with the program, I don't know," Bair told CNBC's "Squawk on the Street." "But longer term, given changing economic conditions as well as the ability of the president-elect to put four governors on the central bank board, [it] could mark a very, very different interest rate environment [and] a very, very different monetary policy."

Bair, who served as the 19th chairperson of the U.S. Federal Deposit Insurance Corporation, advocated for the Republican-controlled congress to provide some fiscal stimulus to counter whatever kind of negative impact higher interest rates could have on the U.S. economy.

She added that as the president-elect enters the White House, the economy might be in a sweet spot, considering Trump provides smarter regulation, lowers top rates and closes loop holes simultaneously.

"I think the stimulus that [Trump] can provide with his program to counter getting out of very low interest rates could be a very huge plus, a nice Goldilocks kind of economy," Bair said.

Bair said Trump's plan on further spending in infrastructure, which she says she has long advocated for, would also be a positive. Blair also said that the U.S. needs fewer regulations.

"The simpler, shorter, more direct rule that gets to the core of a problem is always much better than this quite extensive labyrinth of thousands of pages of rules that a lot of the incremental benefits [are] far from clear," she said. "So, I think if we get smart regulation, that's a good thing."