The Senate banking committee on Tuesday approved controversial Federal Reserve nominee Judy Shelton and Christopher Waller for two vacancies on the central bank’s board of governors.
Their nominations are now directed to the full Senate for confirmation. President Donald Trump had announced his intention to nominate the couple in July 2019, but the move had been delayed during the pandemic and amid growing controversy over Shelton.
Shelton was approved by the committee in a 13-12 vote on the party line five months after a controversial confirmation hearing on his views.
“All Democratic members of this committee think we should have another hearing and speak to it and frankly reject it,” said Sen. Sherrod Brown, a Democrat from Ohio. “Dr. Shelton is a threat to our economy, our democracy, our country.”
Waller was approved by an 18-7 margin.
While Waller faced little opposition during a confirmation hearing in February, Shelton had a much more difficult time.
He faced persistent and sometimes hostile questions about his support for the gold standard, his beliefs about whether bank deposits should be insured and whether the Federal Reserve should be independent of political influences.
Ahead of Tuesday’s vote, Rep. Don Beyer (D-Virginia), vice chairman of the Joint Economic Committee, released a statement opposing Shelton’s move to the central bank, saying her “extreme ideas” should disqualify her for confirmation.
“The current economic crisis has once again underlined the fundamental role of the Federal Reserve and the need for strong and independent leadership in the central bank. Judy Shelton miserably rejects that test,” said Beyer.
In addition to her role as Trump’s advisor, Shelton has worked at the Hoover Institution and was the American director of the European Bank for Reconstruction and Development. Waller’s nomination was much less controversial.
More than 100 economists signed a letter to the Senate calling for its confirmation. He is executive vice president and director of the St. Louis Fed. Waller has also taught economics at Notre Dame and the University of Kentucky.
Still, Brown voted against Waller, saying the candidate favored fewer restrictions on banks. Brown also opposed the nature of the nominees’ “global deal.”
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