I come not to praise Judy Shelton, nor to bury her. But the blanket media and political condemnation of her as President Trump’s latest (I forget which number we’re up to) nominee for the Federal Reserve Board strikes me as having nothing to do with her actual qualifications for the job but rather a reflection on her sponsor and her failure to be “the right kind of people,” meaning someone who doesn’t subscribe to the establishment groupthink.
During the several days prior to her confirmation hearings before the Senate Banking Committee last week, and back when she was first nominated, there was a flurry of scare headlines and stories about her unfitness for the position. No less than the sanctity of the independence of the Fed and the security of the U.S. economy was in jeopardy if she was confirmed. Here’s a small sample:
- New York Times: “As Congress Prepares to Vet Judy Shelton, Worries About the Fed’s Future Mount”
- Washington Post: “Republicans Must Protect the Fed From A Flagrantly Unqualified Nominee”
- Bloomberg: “Judy Shelton Would Destroy Trump’s Pro-Worker Legacy” (as if Bloomberg would acknowledge any Trump accomplishment)
- CNN: “Trump’s Fed Pick Isn’t Just a Gold Bug – She’s Also a Crypto Bull”
The Post also provided 10 of what it says are her “most controversial quotes.”
Controversial quote number 1 was this: “I don’t see any reference to independence in the legislation that has defined the role of the Federal Reserve for the United States. It would be in keeping with its historical mandate if the Fed were to pursue a more coordinated relationship with both Congress and the president.”
Indeed, how independent can the Fed be when its members are appointed by the President and ratified by the Senate? And it funds itself by buying massive amounts of government securities. Not to mention that Congressional mandate thing. Is it unreasonable to expect an agency that has a Congressional mandate might actually have to report to Congress every so often to make sure it’s adhering to that mandate? Continue reading "Judy Shelton And The Fed"