Senate panel approves Yellen for Fed chief

The Senate Banking Committee on Thursday approved the nomination of Janet Yellen to take over the Federal Reserve.

Yellen was approved in a vote of 14 to 8, garnering the support of 11 of the panel’s 12 Democrats, as well as three Republicans: Sens. Bob CorkerRobert (Bob) Phillips CorkerTrump angers biz groups with 0B tariff threat 13 GOP senators ask administration to pause separation of immigrant families Trump’s midterm suicide plan: Make children cry and mothers mad MORE (Tenn.), Tom CoburnThomas (Tom) Allen CoburnMr. President, let markets help save Medicare Pension insolvency crisis only grows as Congress sits on its hands Paul Ryan should realize that federal earmarks are the currency of cronyism MORE (Okla.) and Mark KirkMark Steven KirkThis week: Trump heads to Capitol Hill Trump attending Senate GOP lunch Tuesday High stakes as Trump heads to Hill MORE (Ill.).

The remaining seven Republicans on the panel opposed the nomination, as did Sen. Joe ManchinJoseph (Joe) ManchinKaine shares photos of child detention facility: ‘The real Trump Hotel’ Manchin becomes final Democrat to back bill preventing separation of immigrant families Manchin touts support for Trump border wall in new ad MORE (D-W.Va.).

The bipartisan vote indicates that Yellen should face little trouble receiving full confirmation by the Senate. If confirmed, Yellen would take over for current Fed Chairman Ben Bernanke and become the first female head of the world’s leading economic institution.

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However, the relatively strong GOP resistance to the pick, even among members who acknowledge her qualifications, suggests Yellen could set a new low in terms of Senate support for a Fed nominee. Bernanke received only 70 votes for his second term in 2010, the lowest rate of support ever for a Fed chairman.

Debate over the central bank has grown more partisan since then, as several high-profile Republicans, like Sen. Rand PaulRandal (Rand) Howard PaulSenate passes 6B defense bill This week: House GOP caught in immigration limbo Amendments fuel resentments within Senate GOP MORE (R-Ky.), have assailed the central bank’s policies.

Manchin surprised many when he cast a vote opposing Yellen, separating him from his Senate Democratic colleagues. He did not offer an immediate explanation for the vote, although he did tell Yellen during her confirmation hearing that they disagreed on policy.

The vote to back Yellen, the current vice chairwoman of the Fed, came exactly one week after she testified before the banking panel on her nomination. Chairman Tim JohnsonTimothy (Tim) Peter JohnsonSenate GOP rejects Trump’s call to go big on gun legislation Court ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit MORE (D-S.D.) called her a "model candidate" to lead the Fed.

At her hearing, Yellen faced little challenge from Republicans on her experience or qualifications, although several aired their concerns about the Fed’s stimulus policies.

Before Thursday’s vote, Sen. Mike CrapoMichael (Mike) Dean CrapoGOP senators introduce bill to prevent family separations at border All the times Horowitz contradicted Wray — but nobody seemed to notice Senate Dems want watchdog to probe if SEC official tried to pressure bank on gun policies MORE (R-Idaho), the ranking Republican on the panel, again blasted the Fed’s policies, which he said were “frankly worrisome.”

The central bank is buying up billions of dollars of bonds each month in an effort to further support the economy, and Yellen has consistently backed that approach.

GOP lawmakers argue the policy is ineffective and risky, and say the Fed should pull back.

During her hearing, Yellen defended the stimulus, saying it was needed to fuel the economy after the recession. But she also acknowledged that the policy was unsustainable and not appropriate for more regular economic conditions.

Thursday’s vote made clear that while some Republicans have concerns about Yellen’s reputation as a “dove” supportive of more aggressive efforts to tackle unemployment, many did not see that policy difference as a reason to oppose her.

Yellen received nearly unanimous support from the panel’s Democrats, including several who took the rare step of openly advocating for her nomination before President Obama had made a selection. Several Senate Democrats had signed on to a letter this summer calling on the president to pick Yellen, amid reports that the president was favoring his former economic adviser, Lawrence Summers.

Facing resistance in his own party to his nomination, Summers eventually withdrew his name from consideration, clearing the way for Yellen to be picked in October.

Sens. Elizabeth WarrenElizabeth Ann WarrenWarren on family separation policy: Trump is ‘taking America to a dark and ugly place’ Overnight Defense: States pull National Guard troops over family separation policy | Senators question pick for Afghan commander | US leaves UN Human Rights Council On The Money — Sponsored by Prudential — Markets roiled by Trump's new tariff threat | Trump lashes out at Canada over trade | Warren looks to block Trump pick for consumer agency MORE (D-Mass.) and Heidi HeitkampMary (Heidi) Kathryn HeitkampPoll: GOP challenger narrowly leads Heitkamp in North Dakota Trump plan to claw back billion in spending in peril Manchin becomes final Democrat to back bill preventing separation of immigrant families MORE (D-N.D.) said they were delighted to see the first woman take a step closer to taking over the Fed.

Warren sharply criticized Paul’s threat to hold up Yellen’s nomination by demanding a vote on his legislation to fully audit the Fed first, calling it “one more example of abuse of the filibuster.”

“His problem is not with Janet Yellen and with her policies generally. He wants a protest to just stop the process of considering people going forward,” Warren said.

If confirmed, Yellen would take control of the Fed in January, after Bernanke’s term expires. She would enter the Fed at a crucial time, as officials there are discussing the appropriate time to begin slowing its stimulus efforts. Many observers think that process could begin in the spring.

— This story was updated at 11:32 a.m.