Here’s how. Shelton is also viewed even within her own party as a partisan opportunist. The nominee, Judy Shelton, has generated opposition for her pointed criticisms of the Fed and her advocacy for a return to the gold standard as a monetary system. All Rights Reserved. The Senate on Tuesday narrowly voted to block the confirmation of Judy Shelton, President Donald Trump’s controversial pick to join the Federal Reserve’s seven-member board of governors. She tweeted this out this morning. Part of HuffPost Politics. Two … Go deeper: Judy Shelton vs. Fed independence; Fed picks to raise political independence at confirmation hearings AP Images. Shelton’s nomination was … Trump renewed Shelton’s nomination Sunday, the first day of the 117th Congress. After advocating the gold standard and voicing support for high interest rates, she quickly reversed course once Trump announced his intention to nominate her to the Fed. I think you said it best that what we will get is the authentic Judy Shelton, and that is what bothers me tremendously. Sign up for membership to become a founding member and help shape HuffPost's next chapter. The first is her long record, and the second is her recent sprint away from it. The Senate on Tuesday narrowly voted to block the confirmation of Judy Shelton, President Donald Trump’s controversial pick to join the Federal Reserve’s seven-member board of governors. The nominee, Judy Shelton, has generated opposition for her pointed criticisms of the Fed and her advocacy for a return to the gold standard as a monetary system. Mills also speculated that Shelton might have a rougher road given the speculation that she might be considered for the Fed chairmanship after Jerome Powell's term ends. In a statement released ahead of the vote, Senate Minority Leader Chuck Schumer (D-N.Y.) called Shelton “without a doubt, one of the least qualified nominees I have ever seen for our nation’s central bank.”. Shelton "has too many alarming ideas and has … ET Federal Reserve nominee Judy Shelton faced a blistering confirmation hearing Thursday, as senators grilled her over her views on central bank independence, the gold standard and whether the money that people deposit at banks should be insured. I think you have done very well today.". The first is her long record, and the second is her recent sprint away from it. “We might as well resurrect Gosplan,” the USSR’s economic planning committee. Sen. Mike Rounds: Shelton is more reasonable than some pundits have suggested. "The problem is, you've got a lot of writings, strong writings of a very political nature, and now your responses are totally inconsistent with the positions you've taken in the past. President Trump has renominated Judy Shelton, a gold advocate and Federal Reserve skeptic, to the Fed’s final vacant seat mere weeks before … Chuck Grassley of Iowa and Rick Scott of Florida were self-quarantining after they announced they were exposed to the coronavirus, and Lamar Alexander of Tennessee was out for family matters, according to his office. Brown pointed to opposition from the American Enterprise Institute. Shelton made her career working with right-wing organizations including the Atlas Foundation and the Hoover Institution, where she criticized the very existence of the Federal Reserve and advocated a return to the gold standard ― the monetary system from the late 19th century that was abandoned during the Great Depression. President Biden on Thursday formally withdrew Judy Shelton’s nomination to the Federal Reserve Board, closing the book on her quest to join the central bank. The upper chamber voted 50-47 against a … "The @WhiteHouse fully supports her, and we remain confident that Judy Shelton will be confirmed upon reconsideration." "In some ways, it's refreshing that that's out in the open. Judy Shelton’s nomination to the Federal Reserve isn’t dead yet. In a procedural vote on whether to end debate on Shelton’s nomination and move along to the confirmation vote, all Democrats voted no as well as three Republican senators: Mitch McConnell of Kentucky, Susan Collins of Maine and Mitt Romney of Utah. But those same ideas have alarmed mainstream economists and financial professionals who believe such programs fueled the Depression and would generate international economic chaos today. Shelton spent the hearing trying to downplay those concerns. Shelton also faced some push-back on the Republican side, with Sen. Patrick Toomey of Pennsylvania disagreeing with a notion Shelton raised that the U.S. should consider following its global peers when they devalue their currency. Shelton sought to clarify previous positions she has stated, but that only drew more criticism from Democrats. Trump's Republican Party has a 53-47 majority in the current Senate, but several senators were absent on Tuesday, including two … During the crisis of 2008, nobody did. Trump is an outspoken advocate of low interest rates, believing them to be a source of economic growth. ", Ohio's Sherrod Brown, the leading Democrat on the panel, was even more direct: "The bottom line is, Ms. Shelton has too many alarming ideas and has flipped-flopped on too many important issues to be confirmed for this job.". Facing a barrage of criticism over multiple statements she has made over the years, Shelton defended herself as an "outside the box" thinker who would bring her own experience and ideas to the Fed. Photo: Andrew Harrer/Bloomberg News The fear ― shared by liberal Democrats and otherwise conservative stalwarts in the financial sector alike ― is that Shelton would have encouraged economic contraction under a Democratic president, a scenario that would be bad for Democrats and also bad for bank profits, even as it would spur business failures and corporate concentration. Van Hollen repeatedly asked Shelton whether she felt the same way about the swelling debts and deficits under President Donald Trump, who nominated Shelton to the governor's post. But Shelton said she sees independence as a "vital aspect" of the Fed's role and said her cited remarks were merely quoting legislation. Judy Shelton, left, and Christopher Waller, nominees for the Fed’s Board of Governors, at a Senate confirmation hearing in February. "I have great respect for their capabilities and for their judgment. Chuck Grassley and Rick Scott were quarantining after being exposed to the … Judy Shelton’s nomination to the Federal Reserve Board was blocked in the Senate Tuesday, a stunning setback for Senate Majority Leader Mitch McConnell and …