clearn.png
Thursday April 15th, 2021 10:13PM

Controversial Fed nominee Shelton faces razor-thin vote

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — Judy Shelton, President Donald Trump's controversial nominee to the Federal Reserve, faces a razor-thin confirmation tally on Tuesday as the Republican-controlled Senate continues to focus its energies in the lame-duck session on confirming Trump's appointees.

Shelton is an unusually caustic critic of the Fed and is opposed by three GOP senators. Expected absences from two GOP senators who support Shelton could block her from advancing in Tuesday's vote. Vice President-elect Kamala Harris, D-Calif., did not vote in an earlier Senate tally, but if she returns for the vote on Shelton, the nomination could fail.

The situation is further complicated because Senator-elect Mark Kelly, D-Ariz., is set to join the Senate when the chamber returns from its Thanksgiving break. That could leave Shelton short of support for confirmation if Majority Leader Mitch McConnell, R-Ky., seeks a revote next month.

Shelton, a conservative economics commentator, is opposed by Senate Democrats, most economists, and many former Fed officials for her past support of the gold standard and for writings that questioned the Fed’s political independence. Under the gold standard, the U.S. dollar’s value is tied to gold. Under that approach, the Fed has had less leeway to adjust interest rates, even in a severe recession.

Shelton was approved by the Senate Finance Committee on a 13-12 party-line vote in July. Senate Democrats criticized her for appearing to flip-flop on many positions, including near-zero interest rates. She opposed ultra-low rates during President Barack Obama’s presidency but supported them after President Donald Trump took office and demanded that the Fed lower its short-term benchmark rate.

“Shelton has shown herself to be an economic weathervane, pointing whichever direction she believes the partisan winds are blowing," said Minority leader Chuck Schumer, D-N.Y.

Shelton’s path to Senate approval actually may have been eased by Joe Biden’s victory in the presidential election. Now that Trump has lost his reelection bid, there is no prospect for him to name Shelton to become chair when current Chairman Jerome Powell's term is up, which may have made it easier for GOP senators to support her nomination.

As a member of the Fed’s powerful board of governors, Shelton would vote on the Fed’s rate decisions and on banking regulation. The governors also vote on whether to institute emergency measures, such as the Fed’s decisions in March to start buying corporate bonds for the first time and institute a raft of programs to bolster financial markets.

Still, on her own, it’s unlikely that Shelton would have much effect on Fed policy, economists have pointed out. The central bank operates by consensus and Fed governors rarely dissent from interest rate decisions, though Fed bank presidents do. For now, the Fed has pegged its benchmark rate to nearly zero and Fed officials have said they expect it to remain there until at least 2023. Shelton has been picked to fill a term that expires in 2024.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Elections, General Election News, General Presidential Election News, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Ethiopia's PM vows 'final and crucial' offensive in Tigray
Ethiopia’s prime minister says “the final and crucial” military operation will launch in the coming days against the government of the country’s rebellious northern Tigray region
2:41PM ( 13 minutes ago )
Hurricane Iota roars onto Nicaragua as 2nd blow in 2 weeks
Hurricane Iota is tearing across Nicaragua, hours after roaring ashore as a Category 4 storm along almost exactly the same stretch of the Caribbean coast that was recently devastated by an equally powerful hurricane
2:40PM ( 14 minutes ago )
Column: Majors summed up by the young, the bold, the best
Even in the midst of a pandemic, golf still managed to have an uninterrupted schedule and three of the four majors
2:31PM ( 23 minutes ago )
Associated Press (AP)
The Latest: Hispanic caucus asks to meet with Biden
The Congressional Hispanic Caucus is asking to meet with president-elect Joe Biden to discuss plans and staff for his incoming administration
1:45PM ( 1 hour ago )
Biden filling top White House team with campaign veterans
President-elect Joe Biden has announced top White House staff positions, drawing from the senior ranks of his campaign and some of his closest confidants
1:35PM ( 1 hour ago )
Giuliani shows at Trump camp lawsuit hearing in Pennsylvania
President Donald Trump's personal lawyer Rudy Giuliani has entered a federal courthouse in Pennsylvania to cheers across the street from several dozen Trump supporters
1:29PM ( 1 hour ago )
AP Online Headlines - Washington
EU urges Poland, Hungary to sign up to big money budget
Germany is urging member states to put divergences aside in a bid to break a stalemate on the adoption of the bloc’s €1.8 trillion budget and coronavirus recovery package blocked by Poland and Hungary
12:16PM ( 2 hours ago )
States plead for more federal help as virus outbreak worsens
States in the U.S. are renewing their push for more federal money to deal with the fallout from the coronavirus outbreak and to help them distribute a vaccine when one becomes widely available sometime in 2021
12:11PM ( 2 hours ago )
German officials ban anti-lockdown protest near parliament
German officials have cited security concerns in their decision to ban a series of protests planned Wednesday outside the federal parliament by people opposed to coronavirus lockdown measures
11:27AM ( 3 hours ago )
AP Online Congress News
Trump campaign lawsuit over Pennsylvania vote heads to court
A hearing on the Trump campaign’s federal lawsuit seeking to prevent Pennsylvania officials from certifying the vote results remains on track
8:45AM ( 6 hours ago )
Georgia elections chief fights fellow Republicans, Trump
Georgia’s top elections official is under attack from President Donald Trump and other fellow Republicans in the aftermath of the heated election season
12:08AM ( 14 hours ago )
Trump attacks Vegas-area certification of Biden election win
As officials in Nevada certified results of the Nov. 3 election, President Donald Trump took to Twitter on Monday with a new attack on the vote that gave Democratic candidate Joe Biden a 33,596-vote statewide victory
9:54PM ( 17 hours ago )
AP Elections
Republican Burgess Owens defeats Utah congressman McAdams
Democratic U.S. Rep. Ben McAdams lost his bid to win re-election against former NFL player Burgess Owens
6:19PM ( 20 hours ago )
The Latest: Biden says his family following holiday guidance
As Americans face the complications of holding holiday celebrations amid the ongoing pandemic, President-elect Joe Biden says he and his family are trying to navigate the same issues, with safety measures
4:01PM ( 22 hours ago )
The Latest: Biden cites importance of sharing vaccine plans
President-elect Joe Biden says that more coronavirus deaths will be the consequence of the Trump administration refusing to share its vaccine distribution plans with his incoming administration
3:55PM ( 23 hours ago )
General Election News
Brazil voters ignore Bolsonaro's city election endorsements
Brazil’s President Jair Bolsonaro has suffered a setback as most of the dozens of candidates he backed for municipal elections failed to secure victories or spots in runoffs
12:30PM ( 1 day ago )
Pro-Western candidate wins Moldovan presidential election
Maia Sandu, a former World Bank economist who favors closer ties with the European Union, has won presidential runoff elections in Moldova, decisively defeating the staunchly pro-Russian incumbent
6:39AM ( 1 day ago )
AP FACT CHECK: Trump's bogus claims about Biden win, vaccine
President Donald Trump is rebelling against Democrat Joe Biden's win in the presidential election with a litany of falsehoods
12:28AM ( 1 day ago )
General Presidential Election News
Dutch virus restrictions to be eased amid falling infections
Dutch Prime Minister Mark Rutte has eased his country’s coronavirus measures amid falling infection rates
1:52PM ( 1 hour ago )
Theo Epstein steps down after 9 seasons leading Cubs
Theo Epstein is stepping down after nine seasons as the Chicago Cubs' president of baseball operations
1:45PM ( 1 hour ago )
Twitter launches disappearing tweets that vanish in a day
Twitter is launching tweets that disappear in 24 hours called “Fleets” globally, echoing social media sites like Snapchat, Facebook and Instagram that already have disappearing posts
1:20PM ( 1 hour ago )
AP Business
Weak 0.3% US October sales gain spreads some holiday unease
Retail sales in the U.S. grew a slower-than-expected 0.3% in October, even as retailers offered early holiday discounts online and in stores
11:52AM ( 3 hours ago )
Give us a week: Businesses urge clarity on England lockdown
Business leaders are urging the British government to give them as much notice as possible over what restrictions they will face when the lockdown in England expires early next month
11:24AM ( 3 hours ago )
Amazon opens online pharmacy, shaking up another industry
Now sold on Amazon: insulin and inhalers
11:02AM ( 3 hours ago )
AP Business - Economy
Volunteers still needed to test variety of COVID-19 vaccines
Two COVID-19 vaccines might be nearing the finish line, but scientists say it's critical that enough people volunteer to help finish studying other candidates
11:49AM ( 3 hours ago )
The Latest: British PM Johnson tests negative for virus
British Prime Minister Boris Johnson has tested negative for the coronavirus, but will complete 14 days of self-isolation because of contact with an infected person
9:50AM ( 5 hours ago )
Hungary's doctors warn of soaring coronavirus deaths ahead
Doctors in Hungary are warning that a lack of medical staff qualified to treat intensive coronavirus patients could soon lead to soaring deaths and a breakdown in the country’s fragile health care system
9:27AM ( 5 hours ago )
AP Business - Industries
Pandemic draws more Latin American poor into banking system
Across Latin America, the COVID-19 crisis has yielded a rare bright spot: Millions of people who were long excluded from traditional banking have now joined the financial system
9:27AM ( 4 days ago )
Top central bankers: Economy needs help despite vaccine news
The world's top central bankers are saying their economies will still need support despite good news about early stages of vaccine development against COVID-19 which is still the chief threat to the economy
3:57PM ( 4 days ago )
The Latest: Lagarde: Recovery bumpy until vaccine widespread
European Central Bank President Christine Lagarde says the recovery could be bumpy until vaccination becomes widespread
11:47AM ( 6 days ago )
AP Business - Financial Services
Ethiopia's PM vows 'final and crucial' offensive in Tigray
Ethiopia’s prime minister says “the final and crucial” military operation will launch in the coming days against the government of the country’s rebellious northern Tigray region
2:41PM ( 18 minutes ago )
Hurricane Iota roars onto Nicaragua as 2nd blow in 2 weeks
Hurricane Iota is tearing across Nicaragua, hours after roaring ashore as a Category 4 storm along almost exactly the same stretch of the Caribbean coast that was recently devastated by an equally powerful hurricane
2:40PM ( 19 minutes ago )
Column: Majors summed up by the young, the bold, the best
Even in the midst of a pandemic, golf still managed to have an uninterrupted schedule and three of the four majors
2:31PM ( 28 minutes ago )
Pentagon to cut troop levels to 2,500 in Iraq, Afghanistan
Acting Defense Secretary Christopher Miller is announcing plans to reduce U.S. troop levels in Iraq and Afghanistan
2:22PM ( 37 minutes ago )
Tarantino has deal for 2 books on films, including 1 his own
Quentin Tarantino’s next work of imagination will be in book form
2:21PM ( 38 minutes ago )