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 CorkerFormer Dem Tenn. gov to launch Senate bid: report McConnell 'almost certain' GOP will pass tax reform Former New Mexico gov: Trump's foreign policy is getting 'criticized by everybody' MORE (Tenn.), Tom CoburnThomas (Tom) Allen CoburnFormer GOP senator: Trump has a personality disorder Lobbying World -trillion debt puts US fiscal house on very shaky ground MORE (Okla.) and Mark KirkMark KirkHigh stakes as Trump heads to Hill Five things to watch for at Trump-Senate GOP meeting Giffords, Scalise highlight party differences on guns MORE (Ill.).

The remaining seven Republicans on the panel opposed the nomination, as did Sen. Joe ManchinJoseph (Joe) ManchinTrump rips Dems a day ahead of key White House meeting Senate panel moves forward with bill to roll back Dodd-Frank Wealthy outsiders threaten to shake up GOP Senate primaries 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 PaulLexington mayor launches bid for Congress Trump-free Kennedy Center Honors avoids politics Meet the Iran hawk who could be Trump's next secretary of State 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 JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting 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 CrapoOvernight Regulation: Feds push to clarify regs on bump stocks | Interior wants Trump to shrink two more monuments | Navajo Nation sues over monument rollback | FCC won't delay net neutrality vote | Senate panel approves bill easing Dodd-Frank rules Overnight Finance: GOP delays work on funding bill amid conservative demands | Senate panel approves Fed nominee Powell | Dodd-Frank rollback advances | WH disputes report Mueller subpoenaed Trump bank records Senate panel moves forward with bill to roll back Dodd-Frank 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 WarrenOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating Overnight Tech: Net neutrality supporters predict tough court fight | Warren backs bid to block AT&T, Time Warner merger | NC county refuses to pay ransom to hackers Avalanche of Democratic senators say Franken should resign MORE (D-Mass.) and Heidi HeitkampMary (Heidi) Kathryn HeitkampThe Hill's 12:30 Report Avalanche of Democratic senators say Franken should resign Senate panel moves forward with bill to roll back Dodd-Frank 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.