Trump’s Fed nominee could take America on ‘a very, very dangerous path,’ GOP senator warns

Trump’s Fed nominee could take America on ‘a very, very dangerous path,’ GOP senator warns
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President Donald Trump’s nominee to the Federal Reserve, Judy Shelton, appears before the Senate Banking Committee for a confirmation hearing, on Capitol Hill in Washington, Thursday, Feb. 13, 2020. J. Scott Applewhite / AP Some of the Republican Senators who rallied to President Trump in his historic impeachment trial weeks ago reminded the White House Thursday that their votes can’t always be counted for granted, at least when it comes to adding members to the nation’s top economic policy-making panel, the Federal Reserve Board. The Senate banking committee held a hearing this morning on two Trump-backed candidates, Fed economist Christopher Waller and political activist turned Trump adviser Judy Shelton. The selection is especially important because it would ensure a GOP Fed majority well into the next Presidential term, writes Brian Gardner, political analyst in the Washington office of Wall Street investment bank Keefe, Bruyette & Woods, in a note to clients. “Republicans only have a one-vote margin on the Banking Committee,” so a nominee like Shelton, opposed by Democrats, “cannot afford to lose a single Republican vote,” Gardner said later in an email. Trump has leaned on Fed members to cut interest rates. Cheap money helps the U.S. Treasury slow the cost of interest in the national debt as it struggles to finance record budget deficits. Low rates also encourage more Americans to borrow money, in hopes of keeping the economic expansion of the past 10 years going. Cheap money from the Fed has reduced business borrowing costs, but […]

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