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Shelby blocks Diamond nomination for Fed Board

By Sonja Ryst

The Senate has kicked back President Obama's nomination of economist Peter Diamond for the Federal Reserve Board at the request of Sen. Richard Shelby (R-Ala.), delaying an effort to fill open staff positions at the central bank.

Diamond's nomination, one of three for the board, was sent to the White House for reconsideration, Regan Lachapelle, deputy communications director for U.S. Senate Majority Leader Harry Reid, said Friday. For this to happen, only one senator needed to object before the August recess.

In this case, that senator was Shelby, the senior Republican on the Banking Committee.

Shelby told The Washington Post that the president is free to resubmit the nomination and if he does, Shelby will once again oppose his confirmation.

"Professor Diamond is an authority on tax policy and Social Security. It is not clear, however, that his background is ideally suited for monetary policy, especially given the current challenges facing the Fed," he said.

Obama's other two Federal Reserve Board nominations, Janet L. Yellen and Sarah Bloom Raskin, remain on the Senate calendar for a final confirmation vote.

It's unclear whether the Obama administration will nominate Diamond again or how long the process would take if they did. They had nominated Diamond, an MIT professor, on April 29..

The White House didn't immediately respond to a request from the Post for comment and the Federal Reserve declined comment. The Reuters news service is reporting that Obama will renominate Diamond.

The Federal Reserve Board last had had all seven seats filled from March 1 to April 28, 2006; it's currently staffed with five. Donald L. Kohn was sworn in as vice chairman for a four-year term ending June 23, 2010, but he has announced plans to stay until Sept. 1 because the Fed is short-handed. In the meantime he continues participating in Board and Federal Open Market Committee meetings, which are key for deciding the course that the Fed will take in its battle to support the economy.

By Sonja Ryst  |  August 6, 2010; 4:09 PM ET
Categories:  Federal Reserve  
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Next: Week ahead: Federal Reserve committee meets

Comments

Another childish act of obstruction from the Republicans.

Posted by: pbarnett52 | August 6, 2010 5:49 PM | Report abuse

What a disgrace - remember the days when Republicans believed in "up or down votes" and "giving deference to the President."

The sad fact is that Republicans have put a higher priority on defeating Obama politically than in working with him to solve our nation's problems.

Posted by: jbentley4 | August 6, 2010 5:54 PM | Report abuse

This is the tyranny of one. One senator objects to an otherwise qualified nominee and we have to go forward short handed on the Fed, because Richard Shelby is concerned. This is as prime example of dysfunction in the Senate as is possible. Shelby has never demonstrated any particular knowledge, ability or skill with monetary or fiscal policy so how can he singlehanded disqualify the nominee. If the truth be known I expect this is as result of some other petty disagreement that Shelby wants decided in his favor and is holding this nominee hostage.

Posted by: merrylees | August 6, 2010 5:59 PM | Report abuse

The Republicans are absolutely shameless in abusing the ridiculous rules of the Senate. I wish that somehow it would come back to bite them in the you-know-where. That's right, the ballot box. Obama needs to lose his Pollyanna-ish pretentions of "bipartisanship" and start raising holy hell about this nonsense. The Republicans seem perfectly capable of and willing to bring down our country if they think it will help them slime back into completely undeserved power. Can recess appointments be made to the Federal Reserve Board? If so, then Obama should do it, just as he should have done with Becker for the NLRB and other nominees. The Republicans are like a recalcitrant mule in that the only thing which will get their attention is a 2 by 4 to the head.

Posted by: ejs2 | August 6, 2010 6:05 PM | Report abuse

"This is the tyranny of one. One senator objects...

You mean like that judge that threw out the will of the people of California?

Posted by: Anonymous | August 6, 2010 6:09 PM | Report abuse

"This is the tyranny of one...."

You mean like that jusge that threw out the will of the people of California?

Posted by: AnotherContrarian | August 6, 2010 6:11 PM | Report abuse

Diamond's turds have more IQ than Shelby.

Posted by: Anonymous | August 6, 2010 6:24 PM | Report abuse

AnotherContrarian:

Even the judge can't trump the constitution.

Posted by: Anonymous | August 6, 2010 6:40 PM | Report abuse

AnotherContrarian:

Even the judge can't trump the constitution.

Posted by: eyekey416 | August 6, 2010 6:40 PM | Report abuse

We need a TALIBAN-style INSURGENCY - Rep. Pete Sessions - R-Texas.

The "Mock and Block" actions of the GOP are deliberately designed to HURT AMERICA so they can insure that OBAMA WILL FAIL.

I never dreamed that American citizens could get away with actions like this. How many brave American soldiers gave their lives to defend us from this sort of threat?

Posted by: TOMHERE | August 6, 2010 6:52 PM | Report abuse

Shelby is an aszhole.

Posted by: adrienne_najjar | August 6, 2010 6:53 PM | Report abuse

Shelby is lying. Diamond has a Ph.D in economics, and headed the econ dep't at MIT.

Shelby just wants to block someone who will tell the truth and say that tax cuts for the rich are a poor way to stimulate the economy. He must be worried that Diamond would back Alan Greenspan, who recently came out against extending the Bush tax cuts.

Posted by: Anonymous | August 6, 2010 7:11 PM | Report abuse

What in the world are the Dems doing? Squandering their chance for change thats what! What ever happened to the spirit of the "fight?" Obama, pleeeease fight for something. This obstructionism by the Repubicons would be a wholehearted call to demonize Sen. Richard Shelby (R-Ala.) on the airwaves, and radiowaves for what he really is - more self serving than serving the good of the country

Posted by: Anonymous | August 6, 2010 7:13 PM | Report abuse

How can people confuse a court's decision, which may be different from the will of the majority, with a single senator blocking the formerly republican prized mantra of "up or down vote." Courts protect the rule of law, not the will of the majority. That's why we have three branches of government.

Posted by: taxing | August 6, 2010 7:21 PM | Report abuse

Obuma use's helicopter to fly 6 miles in DC.

Michelle spends $325K on vacation in Spain.

Long live the king.
Long live the queen.
And to the masses, "eat cake"

Posted by: Anonymous | August 6, 2010 7:31 PM | Report abuse

Obuma use's helicopter to fly 6 miles in DC to a "speaking" engagement

Michelle spends $325K on vacation in Spain.

Long live the king.
Long live the queen.
And to the masses, "eat cake"

Posted by: Anonymous | August 6, 2010 7:31 PM | Report abuse

Shelby---a rare combination of ignorance and arrogance. Actually, now that I think about it, the combination is not that rare in Congress....

Posted by: Anonymous | August 6, 2010 7:34 PM | Report abuse

Shelby---a rare combination of ignorance and arrogance. Actually, now that I think about it, the combination is not that rare in Congress....

Posted by: marcb1 | August 6, 2010 7:34 PM | Report abuse

It's rather funny when the shoe is on the other foot, all the apparent Democrats, responding to this article, are crying foul. I would suggest to my friends on the "other side of the aisle" ... if you don't like it, elect a super majority of Democrats in the Senate in 2010 (a likely scenario).

Posted by: Viennacommuter1 | August 6, 2010 7:41 PM | Report abuse

"This is the tyranny of one. One senator objects...

You mean like that judge that threw out the will of the people of California?


--

Just like that judge who was nominated by Reagan, blocked by the Democrats, re-nominated by George H. W. Bush and finally approved by the Senate in 1989.

Posted by: Anonymous | August 6, 2010 7:44 PM | Report abuse

Petty childish nonsense from the modern day version of the Know nothings of the 1830s. shelby points out how well schooled and intelligent the nominee is, then says -- I oppose him because President Obama nominated him.

Since the republicons are playing elementary school games recess is the right time to take them to task.

Posted by: John1263 | August 6, 2010 7:47 PM | Report abuse

Any reason for the electorate to make Senate and House rules reform a hot-button issue this election cycle and every cycle until true reform occurs.

Posted by: Anonymous | August 6, 2010 7:49 PM | Report abuse

Tennessee will elect a Democrat for Governor we've seen what a Republican can do/NOTHING/party/NO in trouble and they know it!

I'm glad, I'll be voting for McWherther for Governor he'll be elected and the Republicans will just hate that, they always do!

Country see's party/NO/Republicans who ruined it under their boy blew it BUsh and Republicans believe country will forget that!

Republicans have ruined themselves and our country and the 8.5 Million jobs they lost is proof of that!

Only a fool would vote Republican again after the "CRIMINAL/RECORD/FACT/MESS they left all American's in no wonder their boy blew it Bush the Pew Poll reported left/town/you/office with the "LOWEST JOB APPROVAL RATING IN THE HISTORY OF THE UNITED STATES PRESIDENCY 20 PERCENT!

These facts are the record/truth of the Republicans who hope you won't look at that, who hope your put them back in so they can put you out of work like they did the record 8.5 Million jobs they lost American's who voted for them lol...

..."Be sure now you/run and vote Republican again maybe they can put you out of work too, just like they did 8.5 Million fools who voted for them lol...

Posted by: ztcb41 | August 6, 2010 7:50 PM | Report abuse

The masses were eating cake long before President Obama only it was Republican gruel. only difference is that Fox and CSPAN were keeping it a secret .. Although, it's hard to overlook 4,413 American lives lost for the Bush regime's hysterical, ginned-up lies for invasion....
How can you utterly shameless hypocrites criticize Pres. Obama knowing full well Bush took around 900 vacation days and spent all of August at his phony ranch .. How about that Imperial trip to london in 2003 that cost the Brits alone over five million pds ? (fourteen thousand police on duty and part of the city shut down because of Bush's (and the Bush families) life long paranoid fear for themselves, a paranoid fear Bush applies only for himself, not our troops, that's for sure ...and how many troops have committed suicide In hellish Iraq while Bush was riding his bike? Lots and lots of hypocrisy and racism here I see.

Posted by: mimosa1 | August 6, 2010 7:55 PM | Report abuse

Observation: The liberal Progressives have hired their posters - and citizens not on the dole to post here - must cry out louder and more often to have their voices heard.

Progressives...go blow.

Posted by: joesmithdefend | August 6, 2010 8:20 PM | Report abuse

Please, let's just do it the GOP way, instead of appointing educated MIT professors, let just appoint know-nothing political hacks like Heckuva Job Brownie!

Posted by: Anonymous | August 6, 2010 8:40 PM | Report abuse

Oh, heck. Instead of appointing MIT professors, Obama should just do what Bush did: appoint know-nothing political hacks like "Heckuva Job Brownie"!

Posted by: Anonymous | August 6, 2010 8:42 PM | Report abuse

The "Party of No" strikes again.

It is high time that the US Senate considers revising its rules (this stinking rule as well as Filibuster).

If voters think giving control of the Congress back to the Republicans would solve anything, I challenge them to think back 15 years ago and recall the time and $$$ wasted, and the PAIN they put this country through by putting every Democrat, including the President, on trial with endless subpoenas. They have already said that this is exactly what they plan to do if they gain control. This while "Rome burns?"

Posted by: Woodie731 | August 6, 2010 8:45 PM | Report abuse

Anon: See a Dr. You are too wound up.

Posted by: Anonymous | August 6, 2010 8:53 PM | Report abuse

Boo hoo hoo a judge overtiurned a state vote on constitutional grounds, boo hoo hoo!

If the secretary of state of California had worded the language better it would not have been thrown out!

What do you have against gay people anyway, your straight right?

oops, I thought so, not sure are you?

Well don't let a little gender bending ruin your day, have fun, life is good!

Posted by: Anonymous | August 6, 2010 9:27 PM | Report abuse

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