The U.S. Senate Committee on Banking, Housing, and Urban Affairs today voted on the nomination of Peter Diamond to serve as a member of the Board of Governors of the Federal Reserve System. Although Democrats used their margin on the Committee to approve the nomination, Republican opposition to Diamond was unanimous. Sen. Richard Shelby (R-Ala.), the Ranking Republican on the Committee, made the following statement outlining why Diamond is ill-fit for the position:
STATEMENT OF SENATOR RICHARD C. SHELBY
Committee on Banking, Housing and Urban Affairs
May 12, 2011
“Thank you, Mr. Chairman.
“As I have said many times, Peter Diamond is not the right person for this job.
“Dr. Diamond is, of course, a very accomplished academic and economist.
“He does not, however, possess the appropriate background or experience that makes him the best person for the job at this point in our economic history.
“The Fed’s responsibilities cut across three broad areas: conducting monetary policy, supervising our financial system, and responding to financial crises.
“He does not have experience in any of these areas.
“In addition, he is an old-fashioned, big government Keynesian.
“He supported bailing out the big banks during the crisis.
“He supports additional stimulus and quantitative easing.
“He supports the use of behavioral economics to help bureaucrats control the choices Americans make.
“Finally, he has even advocated the creation of a GSE modeled after Fannie and Freddie to subsidize health care.
“Mr. Chairman, we are a nation awash in talented and capable people. Surely the President can find another nominee with the level of experience and temperament necessary to garner bipartisan support.
“I would hope that you would encourage him to do so.