July 23, 2020
WASHINGTON, D.C. – Today U.S. Senator Angus King (I-Maine) announced his opposition to the nomination of Dr. Judy Shelton to serve on the Federal Reserve Board of Governors, after she passed through the Senate Banking Committee on a party line vote. His full statement below highlights concerns that Dr. Shelton would support dangerous economic policies – including a return to the gold standard – and abandon the longstanding independence that has allowed the Federal Reserve to set economic policy that best serves the short-term and long-term interests of the nation, free of political pressure.
“Throughout her career, Dr. Shelton has embraced extreme monetary policy views – including supporting a return to the gold standard – that would cause serious economic harm during normal times, and lead to absolute disaster under current economic conditions,” said Senator King. “The work of the Federal Reserve has helped keep the American economy afloat during the coronavirus pandemic, but under Dr. Shelton’s vision, the monetary tools that have helped keep businesses from going under and families from going bankrupt would be unavailable. This crisis highlights the danger of her policies, and shows why they must be rejected.
“If that wasn’t enough, Dr. Shelton has also repeatedly shown that she does not respect the longstanding independence which has allowed the Fed to ignore momentary political pressures to instead focus on economic stability and growth. This is a serious threat to the institution itself, and runs the risk of permanently compromising the body’s important ability to focus on economic conditions rather than on political winds or motivations. For these two reasons, it is clear that Dr. Shelton’s approach would not serve the Federal Reserve nor the nation well; I will oppose her nomination.”