On Tuesday, the Senate Banking Committee approved Judy Shelton's candidacy to the Federal Reserve Board, which ensured victory to President Donald Trump on his efforts to create a political confidant who will play a key role in shaping the economic policy.
Shelton was supported by 12-13 votes.
Some have raised concerns that a long-time critic of the Fed, who has questioned the need for a central bank and vilified its activities, might influence the monetary policy of the United States.
Nevertheless, Judy Shelton is a very good economist. Accordingly, she is a supporter of stable money, and in her convictions there is the main idea that the Fed should follow the policy of 1913-1971, which is to make the value of dollar linked to gold.
Prior to the vote, Senator Mike Crapo said that he is "confident that a deep understanding of the monetary policy toolbox, monetary history and commitment to independence will serve the Fed well in its ongoing efforts to stabilize markets, as well as its mission of stability. prices and full employment. "
Another candidate, Christopher Waller, was also nominated on Tuesday, having a support of 7 to 18 votes. Waller, who had spent his career in academia and at the Fed, was seen as a much more contingent candidate for the central bank.
Still, critics are concerned that if Trump is re-elected, he may appoint Judy Shelton to replace Powell as chairman in 2022, making her political independence a top priority.
