{"id":236569,"date":"2010-01-27T05:00:49","date_gmt":"2010-01-27T10:00:49","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/01\/27\/not-the-first-time-senate-has-balked-at-a-fed-nominee\/"},"modified":"2010-01-27T05:00:49","modified_gmt":"2010-01-27T10:00:49","slug":"not-the-first-time-senate-has-balked-at-a-fed-nominee","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/236569","title":{"rendered":"Not the First Time Senate Has Balked at a Fed Nominee"},"content":{"rendered":"

Ben Bernanke<\/strong> now appears increasingly likely to get the 60 votes in the Senate that he needs to stay on the job as Federal Reserve chairman for another four years, thanks to lobbying from the White House, the queasiness of financial markets and a boost from Warren Buffett (who persuaded a home-state senator).<\/p>\n

No nominee for chairman of the Federal Reserve has ever been rejected by the Senate, as has been noted widely. But it wouldn\u0092t have been the first time that the Senate killed a White House nomination for a Fed post.<\/p>\n

Thomas D. Jones<\/strong>, a Chicago businessman, was nominated by Woodrow Wilson to be one of the original members of the Federal Reserve Board in 1914. Jones was controversial because he was a director of the International Harvester Company, unpopular with farmers and progressives and then facing state and federal charges that it was an illegal business combination in restraint of trade.\u00a0 \u00a0But he was a friend and supporter of Wilson, and the president was embarrassed and embittered by opposition to the nomination, according to a history of the Fed prepared by the Federal Reserve Bank of Boston<\/a>. \u00a0The Banking Committee rejected the nomination 7-4. Wilson initially refused to back down, prompting a headline-making showdown on the Senate floor over whether to make Jones\u0092 testimony public. Wilson eventually relented and the nomination was withdrawn.<\/p>\n

More recently, President George W. Bush nominated sitting Fed governor Randall Kroszner<\/strong> for a full 14-year term as a Fed governor. Because of opposition from Senate Banking Committee Chairman Chris Dodd, among others, the Senate never considered the nomination. Mr. Kroszner, who served on the Fed board from 2006 to 2009, is now back at the University of Chicago\u0092s Booth School of Business.<\/p>\n

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Ben Bernanke now appears increasingly likely to get the 60 votes in the Senate that he needs to stay on the job as Federal Reserve chairman for another four years, thanks to lobbying from the White House, the queasiness of financial markets and a boost from Warren Buffett (who persuaded a home-state senator). No nominee […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-236569","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/236569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=236569"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/236569\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=236569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=236569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=236569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}