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Senate votes against advancing Trump's Federal Reserve nominee Judy Shelton

Judy Shelton

Three Republican Senators-Susan Collins of Maine, Lamar Alexander of Tennessee, and Mitt Romney of Utah-have already said they would not vote to confirm Shelton. Because Mr. Grassley attended a floor vote on Monday, it wasn't clear whether that could force other senators to quarantine, a development that would likely derail Ms. Shelton's candidacy.

Sens. Mitt Romney of Utah and Susan Collins of ME, both Republicans, voted against advancing her nomination, and a third Republican, Sen.

Other Trump Fed nominees that failed to be confirmed included former Republican presidential candidate Herman Cain, who later died of COVID-19. She formerly favored higher interest rates, but abruptly changed that position to mirror Trump's low-rate preference once she was in the running for a nomination to the Fed.

As vice president beginning on 20 January, Harris would be the tie-breaker in any 50-50 Senate vote.

"We need a reliable Federal Reserve to help manage our economy in this pandemic". She opposed ultra-low rates during Barack Obama's presidency but supported them after Donald Trump took office and demanded that the Fed lower its short-term benchmark rate. Shelton told lawmakers in her previous February confirmation hearing that "no one tells me what to do". Senate Majority Leader Mitch McConnell, R-Ky, who had initially voted for the nominee, switched to vote against her, giving him the procedural right to bring her up for another vote in the near future.

Trump spokesman Judd Deere tweeted Tuesday that the White House remains "confident that Judy Shelton will be confirmed upon reconsideration".

"Sen. Harris knows this is an important vote, and she's here for it", Sen.

"With the absences now, we have some attendance issues, " Senate majority whip John Thune said Tuesday of Shelton's vote.

Shelton was approved by the Senate Finance Committee on a 13-12 party-line vote in July. Rick Scott (R-Fla.), who was expected to support Shelton, is also quarantining this week after coming into contact with someone who later tested positive for the coronavirus.

On Tuesday, Shelton's nomination, however, did not.

"Nobody wants anybody on the Federal Reserve that has a fatal attraction to nutty ideas", said Sen. That will happen when Sen. -elect Mark Kelly, a Democrat from Arizona, is seated after the special election he won early this month is certified, perhaps by month's end. Mr. Kennedy later backed her nomination.

If both seats are filled this year, Democratic President-elect Joe Biden wouldn't have any vacancies to fill on the Fed board when he takes office in January. Under that approach, the Fed would have less leeway to adjust interest rates, even in a severe recession.

Shelton's nomination should not be revived.

As a member of the Fed's powerful board of governors, Shelton would vote on the Fed's rate decisions and on banking regulation.