Chamber of Commerce to Rand Paul: Drop hold on Federal Reserve nominees

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The Fed Needs its Board Stocked Promptly

The Federal Reserve is short-handed, and that could be dangerous to the economy.

The Fed is the nation’s central bank, charged with managing monetary policy to ensure low inflation and low unemployment. The Fed is also part of the patchwork of agencies tasked with ensuring the safety and soundness of the nation’s financial system. The Fed is run by a Board comprising a Chairman, a Vice-Chairman, and five members, though currently three seats are empty with a fourth opening up May 28. President Obama’s nominees for the three open seats are pending in the Senate awaiting confirmation.

Senator Rand Paul is blocking these nominations as leverage to advance his demands to audit certain Fed actions in 2009 and 2010 relating to home loan reviews. Blocking nominations is standard senatorial fare, whether to the Fed or to any other governmental post to which the Senate has chosen to extend its constitutional “advise and consent” responsibility.

Senator Paul is certainly treading a well-worn path, and while the “advise and consent” hurdle is applied far too widely, in the case of Federal Reserve Board seats Senate confirmation is entirely appropriate. However, the Federal Reserve needs those positions filled now with suitable individuals. Senator Paul should make his point, and then allow the Senate to work its will.

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