Souce: The American Conservative
Why do many senators and the media believe that a candidate for the Fed cannot have conservative views?
Judy Shelton testifies before the Senate Banking, Housing and Urban Affairs Committee during a hearing on her nomination to be member-designate on the Federal Reserve Board of Governors on February 13, 2020 in Washington, DC. (Photo by Sarah Silbiger/Getty Images)
Last week, the Senate Banking Committee met to consider the nomination of Dr. Judy Shelton to the Federal Reserve Board. The hostility toward Dr. Shelton was bipartisan—senators challenged her independence from President Donald Trump and characterized her thinking as too far outside the mainstream to trust with the nation’s economy.
Yet whether or not Dr. Shelton is “independent” of Trump is a red herring. The Fed is the most political and politicized agency in Washington, as evidenced by the work of its Washington staff to vilify Dr. Shelton. Moreover, the Fed’s willingness to facilitate the Treasury’s massive fiscal imbalances seems to be without limit. The biggest threat to Fed independence is the increasing tendency by Congress to treat the agency as a piggy bank whose resources can be tapped to fund pet projects, seemingly at zero cost to the budget.