The Trump administration is one step closer to filling the remaining two board seats in the Federal Reserve.
On Tuesday, the Senate Banking Committee authorized Christopher Waller, a St. Louis Fed economist, and former Trump transition team adviser Judy Shelton in an online vote.
Shelton advanced in a 13-12 vote, dividing the committee according to party lines. Waller advanced with an 18-7 vote, garnering the support of a few Democrats.
Both nominees will now advance to a vote in the full Senate, where they must win a majority of support for full confirmation.
Although Waller appears to have little history of political ties, Shelton’s nomination has been plagued by criticism when Democrats attacked her over key issues such as interest rates and whether or not to reestablish the gold standard.
Shelton, who recently served as the US executive director of the European Bank for Reconstruction and Development, had drawn attention for her unconventional views advocating a more “rules-based” approach to gold-anchored monetary policy.
But when he faced the Senate for his nomination hearing in February, he backed off.
“I would not recommend reverting to a previous historic monetary settlement,” Shelton told the Senate Banking Committee on February 13.
Judy Shelton and Christopher Waller, nominated to serve on the Board of Governors of the Federal Reserve System, testify during the confirmation hearing of the Senate Committee on Banking, Housing and Urban Affairs at the Dirksen Building on Thursday, February 13, 2020. (Photo by Tom Williams / CQ-Roll Call, Inc via Getty Images)
Committee chairman Idaho Republican Mike Crapo said Tuesday he “has no doubt” that Shelton will respect the independence of the Federal Reserve. The panel’s top Democrat, Sherrod Brown of Ohio, described Shelton as a “threat to our economy,” attributing his uneven record in economic policy.
The full Senate vote could be close for Shelton, as Republicans have only a slim 53-47 majority. Bloomberg has reported that Utah Republican Mitt Romney has not vowed to support Shelton’s nomination, meaning the Republican Party can only afford to lose two more votes assuming Romney and all Democrats and Independents vote against her.
A full vote has not yet been scheduled.
