Senate blocks Judy Shelton appointment to Fed

The Senate failed to move Judy Shelton’s appointment to the Federal Reserve Board forward – further complicating what was an already difficult confirmation process.

Shelton, a longtime Fed critic who favors a return to the gold standard, was stuck in a 50-47 vote that was rocked by the absence of some GOP senators and the return of the vice president elected Kamala Harris to the Senate.

Senate Majority Leader Mitch McConnell (R-Ky.) Only needed 50 Republicans to vote for Shelton to advance his nomination.

The upper house of Congress currently has a 53-47 GOP majority, which means McConnell could afford to lose three votes to get Shelton through. In the event of a 50-50 tie, Vice President Mike Pence could vote for and break the tie.

McConnell received several blows before the vote. Republicans Mitt Romney of Utah, Susan Collins of Maine and Lamar Alexander of Tennessee have all vowed to oppose Shelton.

Then Senators Chuck Grassley (R-Iowa) and Rick Scott (R-Fla.), Both backing Shelton’s nomination, were unable to vote because they were in quarantine due to the coronavirus. Grassley had tested positive while Scott was exposed.

In another twist, Alexander said Monday he would not be able to vote on Shelton’s nomination because he had been recalled for what his spokesperson described as “family matters.”

To help Democrats block the nomination, Harris returned to the Senate as California Senator to vote against Shelton, helping them push them to their limits.

“Senator Harris knows this is an important vote and she is here for it. She did not need to be contacted, ”Senate Minority Leader Chuck Schumer (D-NY) told reporters on his return.

McConnell himself voted against Shelton, a tactic which, for procedural reasons, gives him the option to bring back the candidacy for another vote.

If he chooses to resubmit Shelton’s nomination for a vote, he will face a new hurdle: just one new Democratic senator.

Senator-elect Mark Kelly (D-Ariz.) Will be sworn in and replace Senator Martha McSally (R-Ariz.) When the Senate returns after Thanksgiving to serve the remainder of the term of late Senator John McCain.

Kelly is largely expected to oppose Shelton’s nomination.

His appointment was approved by the Senate Banking Committee in July on a vote of 13 to 12 parties. Another candidate for President Trump, Christopher Waller, was approved at the same time 18-7.

Shelton’s views on interest rates have evolved alongside Trump’s. She also expressed skepticism about the need for the Fed to define its policy independently of the President and Congress.

The United States abandoned the gold standard, a system in which currency is backed by gold, in 1933 during the Depression, when Congress passed a resolution nullifying the right of creditors to demand payments in gold. .