Us Economy, Banking And Finance, Us Politics, Interest Rate, 2020 Election, Inflation, Us Dollar, Jobs, Judy Shelton, Christopher Waller, Federal Reserve, Senate Committee On Banking

Us Economy, Banking And Finance

As Congress Prepares to Vet Judy Shelton, Worries About the Fed’s Future Mount

Ms. Shelton, President Trump’s nominee to the Fed, has unconventional views. But it is a recent policy reversal that is stoking the most concern.

12.2.2020

Some central bankers and top economists see Judy Shelton , a prominent Federal Reserve critic who has been nominated by President Trump for a seat on the Fed’s Board of Governors, as a potential threat to the central bank’s prized independence

Ms. Shelton, President Trump’s nominee to the Fed, has unconventional views. But it is a recent policy reversal that is stoking the most concern.

has not materialized). “When you have an economy primed to grow because of reduced taxes, less regulation, dynamic energy and trade reforms, you want to ensure maximum access to capital,” she told The Wall Street Journal’s editorial page . She has also questioned the basis of the Fed’s independence from the White House, even as she acknowledged that central bankers believe that distance shores up their credibility. “I don’t see any reference to independence in the legislation that has defined the role of the Federal Reserve for the United States,” she said, in a question-and-answer session in Washington last year. Related legislation “demands that the Board of Governors of the Federal Reserve work hand-in-hand with Congress and the President to meet certain strategic economic goals for the United States.” Ms. Shelton would hardly be the first appointment to the seven-member Fed Board with a heavy partisan lean. President Ronald Reagan, who was not a fan of Fed independence, stacked the Fed with enough supporters to challenge then-Chair Paul Volcker. But current Fed officials robustly defend the central bank’s independence from politics, and Mr. Powell often says that interest rates are set with an eye toward the economy alone because the Fed avoids “mistakes of character.” History suggests, and some research shows , that politically-tied central bankers can favor policy that hurts the economy in the longer run. Ms. Shelton is expected to face pointed questioning at her confirmation hearing on Thursday before the Senate Banking Committee and must ultimately win confirmation from the full Senate. Bankers are skeptical of Ms. Shelton’s nomination. One senior financial services executive said that her questioning of the Fed’s independence, her skepticism of the need for deposit insurance, and her track record of advocating an anchored currency are areas that would draw lawmaker questions. Congress has been in the Fed’s corner during much of Mr. Powell’s tenure. When the chair testifies on Capitol Hill, as he did this week, he is assured that the Fed’s independence is valued. Senators have previously shot down possible Trump administration appointments to the Fed’s board that were viewed as partisan and problematic: conservative commentator Stephen Moore and former pizza executive Herman Cain were talked about for the job but never formally nominated after lawmakers expressed concern about their past statements and actions toward women. Lawmakers have approached Ms. Shelton’s nomination more cautiously. Senator Kevin Cramer, Republican of North Dakota, who had cooled on Mr. Cain, Mr. Waller and Ms. Shelton “well qualified.” Senator Mike Rounds, Republican of South Dakota, made a case for diverse views at the Fed while questioning Mr. Powell at a Senate Banking hearing on Wednesday. Past Fed nominees have scuppered their chances during their Senate testimonies. But Ms. Shelton has already passed Senate confirmation once, when Mr. Trump nominated her as the American envoy to the European Bank for Reconstruction and Development. She is a practiced public speaker. If Ms. Shelton is confirmed for the Fed but never elevated to the chairmanship, she will have more limited room to shake things up since individual governors hold just one vote on monetary policy, alongside their six fellow board members and five regional Fed presidents. But there are ways in which she could still exert influence. Narayana Kocherlakota, a former president of the Federal Reserve Bank of Minneapolis who was himself a contrarian at the Fed, noted that Mr. Waller and Ms. Shelton could form a coalition. While no governor has voted against a monetary policy decision since 2005, Mr. Waller “is his own person,” said Mr. Kocherlakota, who said he knows him from years of conferences. “The Chair would listen to a bloc of two governors, simply because he wouldn’t want two governors to dissent.” Governors have also historically used public remarks to shape broader policy discussions. Such activism can help to rein in groupthink — or it can be used to serve a political agenda. “If Dr. Shelton comes onto the board of governors and just represents a different point of view, there is no harm to it and possibly some good,” said Adam S. Posen, president of the Peterson Institute for International Economics. “If, however, this is an attempt to politicize the board’s discussion and possibly undermine the chair,” then “that would be a loss for the whole country.” Our 2020 Election Guide Read more: The New York Times

That’s a great thing....audit the Fed!! this is a trash article. if anyone in their right mind aside from liking or hating trump this is the best thing for every person in our country. why should we allow a few private bankers to dictate our economy and make money out of nothing and hold us in debt forever. wake up

EndTheFed Such a BS hit piece. Sounds like it was written by a 'Fabian' nut job. We really don't need a fed. Do you understand what Williams (NYFED) said here in the minutes....... Would he nominate an independent mind? Everything trump touches dies. 'Vet.' 😂. Right. Hint, the Fed is not a government unto its self... thy are not kings and queens

Does anyone actually think that the Fed is independent? Of course it is. Nothing is done by this admin to actually help. Stop claiming the Fed is independent and this is one thing that you surely can’t blame Trump for.

Oil briefly flashed a warning signal that shows traders are worrying about oversupply - Business InsiderBrent crude futures momentarily entered full contango, a signal that the market is worried about oversupply.

When an entire sentence is in parentheses, any final punctuation goes inside the parentheses, not outside them. jeannasmialek If the NYT is talking against her she must be Great. Shocker. Why else would Trump pick her? What independence ? Prominent? Potential? Unconventional? (waits for Carrying-Water-For-Trump-to-English translation) Oh, loud, definitive and unhinged, respectively

There is zero independence left in our current government. Zero. If Trump controls the Fed Res then we are surely headed to ruin across all boards....

Fed’s Powell talks to Congress about outlook for U.S. economy: live blogFed Chairman Jerome Powell will testify to Congress about the U.S. economic outlook

Stock market live updates: Dow turns negative, Trump blames Powell for fall, Boeing dropsLive updates of what's moving the market, including the latest on Under Armour, the coronavirus and the Fed.

Watch Fed Chair Jerome Powell speak to Congress liveLiveSquawk “Stop spending so much money. Thank you for your time” LiveSquawk Pretty sure I'd rather chew off my own fingernails. LiveSquawk listen to lies again

Cnbc @CNBCWATCH: Fed Chair Powell testifies on the state of monetary policy before Congress. Powell? Thats Maxine Waters! Get it right. A central bank has no place in our democracy! In other words 'repo on'.

Keith Urban, Blake Shelton, Tanya Tucker, more play rip-roaring benefit for country Hall of FameIf you've ever noticed Keith Urban on an awards show, it's probably been a shot of him in the audience…



Celebrities rally to send bullied boy to Disneyland

Trump Mocks ‘Parasite’ Best Picture Win: ‘What the Hell Was That All About?’

BTS' 'Map of the Soul: 7' Is Here: Stream It Now

Lori Vallow, mother of two missing Idaho children, arrested in Hawaii

Pigeons with 'Make America Great Again' hats glued to their head released in Las Vegas

Trump complains about 'Parasite' winning best picture

Trump Rips 'Parasite' Oscars Win and Brad Pitt in Colorado Rally Rant

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

12 February 2020, Wednesday News

Previous news

Calculating Air Pollution’s Death Toll, Across State Lines

Next news

A Simple Way to Equalize the Ivies? Give Others the Legacy SAT Bonus
Two children vanished from Idaho in September. Since then, their mom re-married, fled to Hawaii and was just arrested Joe: America crosses Rubicon this week Opinion | The Billionaire Election A 15-month-old was reported missing this week -- two months after she was last seen Pediatrician: Several vaccines at once might be too much for parents, but kids are just fine BTS releases new album 'Map of the Soul: 7' Coronavirus-Hit Japan Limits Large Gatherings Coronavirus Outbreaks at China Prisons Spark Worries About Unknown Clusters Warren to Bloomberg: Here's how you let women out of those NDAs Dems should focus on Sanders, not Bloomberg: Eugene Robinson Three new coronavirus cases discovered in northern Italy Blake Shelton Joins 2020 iHeartCountry Festival Lineup
Celebrities rally to send bullied boy to Disneyland Trump Mocks ‘Parasite’ Best Picture Win: ‘What the Hell Was That All About?’ BTS' 'Map of the Soul: 7' Is Here: Stream It Now Lori Vallow, mother of two missing Idaho children, arrested in Hawaii Pigeons with 'Make America Great Again' hats glued to their head released in Las Vegas Trump complains about 'Parasite' winning best picture Trump Rips 'Parasite' Oscars Win and Brad Pitt in Colorado Rally Rant Trump is mad Dems know Russia is meddling to get him re-elected Trump isn't pleased a South Korean film won best-picture Oscar Coronavirus updates: South Korea reports big jump in cases, virus spreading in Chinese prisons U.S. women's soccer players seek more than $66 million in damages Selena Gomez Finally Officially Releases 2016 Song 'Feel Me'