Monday, February 10, 2020

Popcorn Time: Judy Shelton to Testify Before Senate Banking Committee

President Trump's nominee for a Federal Reserve Board governor's position, Judy Shelton, is scheduled to testify before the Senate Banking Committee this week Thursday.

I have stated before:
Her monetary policy views are contradictory and for the most part radically inflationary.
Joe Salerno has written:
 [S]he leans heavily toward supply-side economics, which is deeply flawed on monetary policy. Like most supply-siders, the position she advocates may be summed up in the motto, “I favor sound money—and plenty of it.”
Remarkably, at other times she has called for a gold standard, which would be a sound policy step. But no doubt when testifying before the anti-gold Keyensian influenced banking committee, she will throw her gold standard position under the bus.

It is going to be very painful for sound money advocates to watch her testify if they take her seriously. My advice is not to expect any sound testimony from her. Any woman, or man for that matter, who can hold the contradictory positions of sound money and aggressive money printing at the same time is a Professor Irwin Corey act.

Of course, underneath it all, Trump must be confident that on the Fed she will advocate for low interest rates which means more money printing, or he wouldn't have nominated her.

The Senate Banking Committee is split along party lines, 13 to 12, so yes votes from all Republicans will probably be necessary to advance her confirmation to the full Senate.

But according to The Washington Post, a senior Trump administration official, who spoke on the condition of anonymity to discuss private deliberations, said that the administration does not anticipate any problems getting Shelton confirmed. Her meetings with senators have been successful, the official said, and “her confirmation process in committee remains on track.”


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