Shelby on Diamond
The senior Republican on the Banking Committee and senior senator from Alabama, who is blocking lauded economist Peter Diamond from joining the Federal Reserve board, doubles down on his objections after Diamond wins a Nobel Prize:
[Sen. Richard] Shelby says Diamond lacks expertise in so-called monetary policy — the setting of interest rates and other tools that are used to influence the nation’s economic growth, employment and inflation.
“While the Nobel Prize for economics is a significant recognition, the Royal Swedish Academy of Sciences does not determine who is qualified to serve on the Board of Governors of the Federal Reserve System,” Shelby said Monday.
No, it is not the Nobel Committee. It is the Senate. Notably, most members of the Senate do think that Diamond is perfectly well-qualified for the position. But Shelby refuses to let them vote* *to show their support.
Here is more on Diamond’s work, which focuses on markets and unemployment.