Nomination to Fed stalls in Senate

WASHINGTON — The nomination of Judy Shelton, President Donald Trump’s pick for the Federal Reserve, is stalled in the Senate after Vice President-elect Kamala Harris returned to the chamber to cast a key vote against Shelton in a tally Tuesday.

Two Republicans were absent because of covid-related concerns. The 47-50 vote came as the Republicancontrolled Senate continues to focus its energies in the postelection lame-duck session on confirming Trump’s appointees.

Shelton is a critic of the Fed and was opposed by two Republican senators, Susan Collins of Maine and Mitt Romney of Utah, in Tuesday’s vote. Harris has been focused on the transition to the Biden administration but returned to the chamber for her first vote since winning the vice presidency.

Shelton is opposed by Senate Democrats, most economists and many former Fed officials for her past support of the gold standard and for writings that questioned the Fed’s political independence. Under the gold standard, the U.S. dollar’s value is tied to gold. Under that approach, the Fed would have less leeway to adjust interest rates, even in a severe recession.

Senator-elect Mark Kelly, D-Ariz., is likely to join the Senate when the chamber returns from its Thanksgiving break. That could leave Shelton short of support for confirmation even if Majority Leader Mitch McConnell, R-Ky., seeks a re-vote next month.

Another Republican opponent, Lamar Alexander of Tennessee, missed Tuesday’s vote, and his return could cement Shelton’s fate, even after Rick Scott, R-Fla., and Charles Grassley, R-Iowa, return to the chamber after quarantining because of exposure to the coronavirus.