President Trump
Donald John TrumpDHS expands staff authority to collect information on people who threaten monuments: Republican report points to Trump’s payroll tax cut on Republican coronavirus bill, for now Trump threatens to duplicate Portland in other major cities PLUSJudy Shelton’s controversial nomination for the Federal Reserve won the support of a Senate panel on Tuesday, paving the way for a final confirmation vote on her appointment to the central bank’s board of governors.
The Senate Banking Committee voted in line with the party to recommend Shelton’s confirmation as Fed governor, the latest hurdle she faced before a full vote in the Republican-controlled Senate on her nomination.
The 13 Republicans on the Banking Committee voted in favor of Shelton, who has been criticized for his previous support of linking the US dollar to the gold standard, while the 12 Democrats voted in opposition.
Shelton’s battle road to the Fed board appears to be clearing despite initial doubts about its viability, including rejection by some Republican senators and opposition from economists and former Fed officials across the political spectrum. Republicans say Shelton’s earlier positions would not hinder his service at the central bank, but would offer a novel insight into the economy.
“Dr. Shelton’s experience working for nonprofits and academic institutions forged his deep understanding of democracy, economic theory, and monetary policy that will broaden and diversify the perspective of the Federal Reserve,” said the chairman of the Banking Committee of the Senate. Mike Crapo
Michael (Mike) Panel Dean CrapoSenate to vote on Trump’s controversial election Fed Shelton GOP skeptical of Trump GOP polls: Trump needs a new plan MORE (R-Idaho) before the vote.
“I am confident that your deep understanding of the Federal Reserve’s monetary policy toolkit, its monetary record, and your commitment to maintaining the independence of the Federal Reserve will serve the Federal Reserve well and its continued efforts to stabilize markets and its mission of price stability and full employment “.
Shelton is a former executive director of the United States at the European Bank for Reconstruction and Development.
The committee also approved Trump’s nomination of Christopher Waller, executive vice president of the St. Louis Federal Reserve Bank, to the Fed board by an 18-7 vote, with five Democrats joining all Republicans in support of your nomination. The full Senate is expected to easily confirm this to the Fed board.
Trump turned to Shelton and Waller for the Fed’s board in January after initially announcing his intention to nominate them in July 2019. While Waller is a widely-respected choice in the mold of Trump’s past successful appointments, Shelton’s nomination It has faced fierce resistance for its ties to the President and an unorthodox approach to monetary policy.
Shelton, like Trump, criticized the former Fed president Janet Yellen
Janet Louise YellenJobless Says Bets Increase In Battle For COVID-19 Aid On The Money: Improved Unemployment Insurance Likely To Expire During COVID-19 Aid Talks | Trump says he will not issue national mask mandate | Mnuchin: Most affected companies should be able to get the second PPP Yellen payment, Bernanke urges Congress to extend the increase in unemployment benefits MORE for keeping interest rates close to zero during the recovery from the Great Recession, but asked the bank to drastically cut rates after taking office. Both had urged the Fed to lower rates and reduce the value of the US dollar to make US exports relatively cheaper in foreign markets before the coronavirus pandemic forced the central bank to lower rates again.
Shelton had also spent decades arguing in favor of linking the value of the US dollar to gold, an idea widely rejected by economists as impractical and dangerous in the modern central banking system, and called for the creation of a North American monetary union with Canada and Mexico. .
“If gold had been at the center of the monetary system, the US and global economies might well have gone over a precipice,” wrote David Wilcox, former Fed research director, in an op-ed for The Hill last week. “Shelton’s support for the gold standard is not the only reason it should not be confirmed by the Senate, but it is a priority on the list.”
Several tax conservatives on the Banking Committee were furious at Shelton’s unconventional views and appeared to oppose his nomination after a brutal confirmation hearing. But Shelton was able to beat GOP Sens. Richard Shelby
Richard Craig ShelbyGOP eyes more than a billion for schools in coronavirus package This week: Confederate statues debate, fifth coronavirus bill heats up House panel wraps up lightning fast allocations for 2021 MORE (To.) Pat toomey
Patrick (Pat) Joseph Toomey Dunford Withdraws from Consideration to Chair Coronavirus Oversight Panel Republican senators push for a quick and partial reopening of the economy. (Pa.) And John Kennedy
John Neely KennedyMORE (La.), Who initially resisted supporting it.
Democrats on the committee criticized fellow Republicans on Tuesday for approving Shelton amid the worst economic crisis since the Great Depression. Democrats have criticized Shelton for her controversial and sometimes inconsistent views on monetary policy and for fear that Trump will take advantage of it to topple Fed Chairman Jerome Powell, a frequent target of the president’s criticism.
“His flip-flops, his political beliefs and his objections to Fed independence worry conservative and liberal economists alike. – and in February, some of my fellow Republicans were concerned, “said the senator. Sherrod Brown
Sherrod Campbell BrownDesiree Tims outscores former Republican Rep. Michael Turner by more than 0K in the second quarter. Senate Democrats Request Information About Russian Reward Transfers On The Money: Mnuchin, Powell Differ On How Soon The Economy Will Recover | Millions fear eviction without further help from Congress | IRS chief agrees to work on role of tax code in racial wealth disparities PLUS (Ohio), the committee’s top Democrat, ahead of Tuesday’s vote.
“Dr. Shelton may not be able to imagine an economic crisis like the one we are in today, but I certainly can imagine how worse it would be if I were on the Federal Reserve Board right now,” he added.
Democrats had called for a new hearing on Shelton’s nomination amid the coronavirus recession, but were rejected by Crapo.
The committee chairman’s decision to vote on Shelton’s nomination indicates a degree of confidence in his chances before the full Senate. It is rare for any of Trump’s high-profile nominees to be approved by a Senate committee without being subsequently confirmed by the Republican-controlled Senate.
Still, Shelton has a narrow path to confirmation if all members of the Senate Democratic committee oppose it. If no Democrat supports her, opposition from four Senate Republicans would disrupt her nomination.
Senate Republicans have already voided the last four Trump elections for Fed board seats that would be filled by Shelton and Waller.
Former Carnegie Mellon professor of economics Marvin Goodfriend was approved by the Banking panel in February 2018, but never received a full confirmation vote after Senate conservatives opposed his nomination. Goodfriend was not renamed when a new Congress was called in 2019 and he died of cancer in December of that year.
Former Federal Reserve research director Nellie Liang, a Democrat, withdrew her nomination in January 2019 after Republicans voiced concern about her role in implementing post-crisis banking regulations, widely rejected by the party. .
Trump had also announced his plans to nominate economic adviser Stephen Moore
Stephen Moore, optimistic about Stephen Moore’s economy: “This was a good week,” shows Sunday: Coronavirus resurgence dominates Trump economist, says voting for Biden is “terrifying proposition” MORE and former 2008 Republican presidential candidate Herman Cain
Herman CainTulsa Health Official: Trump Demonstration ‘Probably Contributed’ To COVID-19 Increase Campaign White House Help To Oversee Trump Demonstrations To Hold Open Air Demonstration In New Hampshire Saturday MORE to the Fed seats in 2019, but changed course after several Republican senators announced their opposition.
.
