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 of 91 to 7, and Chair Powell to a second term on a vote of 80 to 19.

Ukraine

Congress had hoped to quickly approve the Biden Administration’s request of $33B for Ukraine this week.  The House voted 368 to 57 in favor of the legislation.  All 57 of the NO votes were cast by Republicans.  As the bill quickly moved through the House, its size increased from $33B to nearly $40B, with more help to rebuild the war torn nation.

The Senate had hoped to approve the legislation before leaving town on Thursday night, but opposition from Kentucky Republican Rand Paul prevented quick action.  Both Leaders, Schumer and McConnell, tried to move the legislation with unanimous consent, but were stopped when Senator Paul objected.  To move the legislation will require the Senate to invoke the cloture rule and move the bill forward.  That will require several votes starting Monday night, but the aid has broad bipartisan support and should pass next week.

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