Janet Yellen’s nomination to take over the Federal Reserve ran into conservative opposition on Monday as the advocacy arm of the Heritage Foundation urged senators to vote against her.
Heritage Action announced Monday that it would include a vote on Yellen’s nomination, which is expected to take place in December, on its congressional scorecard. A vote in favor of Yellen will be rated negatively.
The group argues Yellen has failed to present a plan to wind down the Fed’s massively expanded portfolio and said that is reason for the Senate to block her nomination.
Conservatives have warned this accommodative policy is ineffective and carries significant dangers when it comes time to remove that stimulus. Fed officials are preparing to begin slowing the support in the coming months.
In addition to blasting Fed policy, Heritage Action also criticized the Fed’s expanded role in the wake of the financial crisis and enactment of the Dodd-Frank financial reform law. The regulator offered a massive lifeline to financial institutions during the financial meltdown via a host of emergency loans, and now plays a significant role with other regulators in implementing the landmark financial overhaul.
Despite the growing conservative opposition, Yellen had been expected to receive enough votes for confirmation — and that was before Senate Democrats changed the rules last week to ensure majority votes on nominees. Now Yellen can be confirmed with just Democratic votes.
If confirmed, Yellen would become the first ever female head of the Fed.
During her confirmation hearing, Yellen, the Fed's current vice chair, stuck by its policies while acknowledging they must be wound down at some point.
She received the backing of three GOP senators on the Senate Banking Committee when that panel approved her earlier this month. Sens. Bob CorkerBob CorkerFormer Ford CEO possible candidate for secretary of State: report Reid bids farewell to the Senate Reid defends relationship with McConnell in farewell speech MORE (R-Tenn.), Mark KirkMark KirkJuan Williams: McConnell won big by blocking Obama Battle for the Senate: Top of ticket dominates The untold stories of the 2016 battle for the Senate MORE (R-Ill.) and Tom CoburnTom CoburnWill Trump back women’s museum? Don't roll back ban on earmarks Ryan calls out GOP in anti-poverty fight MORE (R-Okla.) all backed her nomination, while the remaining seven Republicans opposed her.
Yellen does not enjoy unanimous support among Democrats, even though several openly advocated for her nomination this summer. Sen. Joe ManchinJoe ManchinSenate Democrats dig in as shutdown approaches Overnight Energy: Fight over miners' benefits risks shutdown | Flint aid crosses finish line in House Overnight Healthcare: Burwell huddles with Dems on fighting ObamaCare repeal MORE (D-W.Va.), citing his concerns with Fed policies, voted against Yellen in committee.
A handful of Republican senators have announced they plan to vote against Yellen on the Senate floor, including Sen. Marco RubioMarco Rubio House passes water bill with Flint aid, drought relief What the 2016 election can tell us about 2018 midterms Fight over water bill heats up in Senate MORE (R-Fla.). Sen. Rand PaulRand PaulBrexit leader Farage pushing US-UK trade deal to Trump Senate sends annual defense bill to Obama's desk GOP rep: Trump has 'extra-constitutional' view of presidency MORE (R-Ky.) has called for a vote on his bill fully auditing the Fed’s activities before considering her nomination, and Sen. Ted CruzTed CruzThe Hill's 12:30 Report Cruz defends Trump's Taiwan call Ark., Texas senators put cheese dip vs. queso to the test MORE (R-Texas) has joined that cause.