There was a time when appointing people to the Federal Reserve Board wasn’t just uncontroversial, it was downright boring. But in an age when the central bank is printing trillions of dollars to prop up the economy and backstop the stock markets, essentially reinforcing the wealth machine on Wall Street, people take a very keen interest in who gets to vote on monetary policy.
Apparently, enough Senators were uncomfortable with the views expressed by Trump’s latest pick Judy Shelton that they decided to take a pass. Senator John Thune tweeted that, even though her name survived in the Senate Banking Committee, she doesn’t have the votes necessary in the full Senate to win confirmation.
Shelton’s monetary sin is that in the past she’s expressed support for a hard-money financial system, like a system based on gold.
Those are fighting words to Congressmen who live to spend newly-printed cash. While it’s nice to think of a Congress required to live within its means, it’s very unlikely. Any nation returning to a hard money currency, while other nations allowed their currency to float, would immediately be subjected to wild swings in the international markets, which isn’t good for anyone.