Maine’s Collins opposes Trump’s Fed pick
WASHINGTON — Sen. Susan Collins, R-Maine, said she will vote against economist Judy Shelton’s nomination to the Federal Reserve Board, raising the stakes of a political fight around one of President Donald Trump’s controversial picks for a seat on the central bank.
Collins joined Sen. Mitt Romney, R-Utah, in opposing Shelton’s nomination, which is scheduled to go for a vote before the full Senate. Collins and Romney alone can’t derail Shelton’s advancement, but the margin is getting thinner for Shelton, who is known for her outspoken criticism of the Fed and her advocacy for a return to the gold standard.
“I have serious concerns about this nomination,” Collins said in a statement Monday. “In her past statements, Ms. Shelton has openly called for the Federal Reserve to be less independent of the political branches, and has even questioned the need for a central bank.
“This is not the right signal to send, particularly in the midst of the pandemic, and for that reason, I intend to vote against her nomination if it reaches the floor,” she said.
Collins faces a tough fight for re-election this year and has occasionally broken with Trump.
Romney said last week that he would vote against Shelton.
If the Senate’s Democrats and Independents all vote against the nomination, Shelton’s confirmation could be doomed if she loses the support of more than three Republicans.
Typically, the process for confirming Fed governors does not fan political flames or depend on such thin party margins. But Shelton’s nomination has been rocky from the start, including well before the coronavirus pandemic put sharp focus on the Fed.
In past remarks and writings, Shelton, who advised Trump’s 2016 presidential bid, has said the Fed harnesses too much power and should be reined in. She has also called for a return to the long-abandoned gold standard, which her critics say makes her an outlier when it comes to monetary policy.
Last week, after a delay of more than a year, the Senate Banking Committee voted 13 to 12 to approve Shelton’s nomination. Multiple Republicans on the panel had expressed reservations about her controversial views related to monetary policy and the Fed’s independence. But all 13 Republicans on the committee eventually said they wouldn’t hold up Shelton’s nomination and cleared the way for her to advance to the full Senate.
All 12 Democrats on the committee opposed Shelton’s nomination and called for a new hearing.
The nomination was initially held up by Republican Sens. Richard Shelby of Alabama, John Kennedy of Louisiana and Pat Toomey of Pennsylvania. Kennedy, the last holdout, agreed to support the nomination this month after pressure from the White House. He said he also plans to vote for Shelton on the Senate floor.
Sen. Lisa Murkowski, an Alaska Republican who is close to Collins and has sometimes bucked Trump, indicated last week that she was leaning toward supporting Shelton’s confirmation.