Two of President Trump’s nominees to serve at the Federal Reserve advanced in the Senate Tuesday, winning approval from the Senate Banking Committee.
The panel voted 20-5 to approve Richard Clarida, an academic and former adviser to the investment giant PIMCO, to serve as vice chairman of the Fed’s Board of Governors. It also approved Michelle Bowman, the Kansas state bank commissioner, to serve as a member of the board on an 18-7 vote.
If confirmed by the full Senate, Clarida and Bowman would be the fourth and fifth members of the board, four of whom would have been appointed by President Trump.
“Their expertise and experience will be an asset for the Federal Reserve,” said committee Chairman Mike Crapo, R-Idaho.
Like Chairman Jerome Powell, Clarida and Bowman are both viewed as responsible choices. Clarida is regarded as a monetary policy expert, and Bowman has the community banking background required of at least one of the board members.
“Rich Clarida’s strong understanding of monetary policy and financial markets — and real-world experience in the private sector — will serve him well as vice chairman,” said Rob Nichols, the chairman of the American Bankers Association.
Even with their appointments, the board still would be two members short of a full complement.
One other nominee, Carnegie Mellon economist Marvin Goodfriend, has seen his confirmation stall because of opposition from Democrats and Republican Sen. Rand Paul of Kentucky.
At Tuesday’s vote, the committee’s ranking Democrat, Sen. Sherrod Brown of Ohio, opposed both candidates on the grounds that they hadn’t sufficiently answered the questions they were asked as part of the process. He noted that some of the written answers they provided for the record on the question of what caused the financial crisis were nearly identical, and suggested that the Fed’s staff had prepared them.
“In this case, I’m not interested in the views of the Fed staff, as talented as they may be,” Brown said.
