The Federal Reserve Board of Governors has been operating with only five of its seven Governors for months as the Senate struggled to approve Biden’s nominations of economists Lisa Cook and Philip Jefferson to the Board.  The hang-up was united Republican opposition to Lisa Cook, a Michigan State economics professor.  In Committee she failed to get any Republican votes.  Senator Pat Toomey, the ranking Republican on the Senate Banking Committee, felt that Ms. Cook didn’t have any experience in monetary policy and was an advocate for far left economic policy that he and other Republicans oppose.

Senate Democratic Leader Chuck Schumer was committed to getting Cook confirmed, along with the less controversial Jefferson, and also a second term as Chair for Powell.  In a tied Senate, Schumer was stymied when Covid cut attendance by Democrats, and also hit VP Harris whose vote would be needed if the Senate tied on the vote for Cook.

This past week all the pieces came together. The nomination of Lisa Cook came before the Senate and, as anticipated, the Senate was tied 50/50, meaning that her confirmation to the FRB was accomplished by a tie-breaking vote by the Vice President. With Cook confirmed, the Senate then moved on to approve Jefferson with a vote o...

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