After 14 Months, Federal Reserve Pick Judy Shelton Deserves A Senate Vote
After 14 Months, Federal Reserve Pick Judy Shelton Deserves A Senate Vote By Sean Fieler for The Federalist
With Democrats united in opposition to sound money, it’s time for GOP senators to confirm Mrs. Shelton and expose the partisan divide on the Fed’s policies.
As Chairman Jerome Powell touts the Federal Reserve’s unanimous adoption of a new consensus statement with a higher inflation target, it is worth noting that none of President Trump’s dissident nominees had a vote in the matter. Senate Majority Leader Mitch McConnell’s failure to schedule a vote on Judy Shelton effectively gives Democrats a free pass on their easy money extremism right before inflation picks up.
For a year and a half, President Trump has been trying to place dissidents on the Fed’s board. In spring 2019, he floated the nominations of Herman Cain and Steve Moore. Within weeks, four Republican senators announced their opposition to Cain’s nomination, accusations of sexual harassment resurfaced, and the late Cain withdrew himself from consideration. While Moore faced no public opposition from Republican senators, after the press intervened to keep his divorce records unsealed, his withdrawal from consideration was a foregone conclusion.
Shelton’s 42 years of marriage and orderly personal life present no such opportunity for personal politics. Moreover, in 2018, the full Senate confirmed her to serve on the board of the European Bank for Reconstruction and Development without objection. This vote left senators opposed to Shelton’s accession to the Fed’s board no choice but to attack on her monetary policy.
During her confirmation hearing, Democrats characterized her defense of gold’s monetary role as disqualifying and her conciliatory tone as disingenuous. An organized group of former Fed officials claimed in a public letter that her presence at the Fed would be a distraction, and Steven Rattner, an Obama administration official, went so far as to call her dangerous in a July New York Times op-ed.
While the Fed’s monetary policy has often been political, pillorying nominees until they withdraw from consideration and then denying them a full Senate vote when they do manage to pass out of committee is unprecedented. Even in today’s highly politicized environment, the borderline hysterical opposition to Cain, Moore, and Shelton is surprising. After all, one vote is not going to change Fed policy.
One dissenting voice would, however, expose the narrow ideology to which Fed officials and staff currently subscribe, a necessary institutional correction given the obvious disdain which some Fed officials have for an outside opinion. Chris Waller, Shelton’s co-nominee and long-time Federal Reserve insider, inadvertently underscored this very point by offering a smirk rather than support for Shelton’s confirmation during their joint confirmation hearing. His attitude demonstrates why President Trump is right to put forward a series of dissident nominees, and why even those who don’t agree with Shelton’s views on monetary policy should sense danger in the Federal Reserve’s ideological rigid conformity.