WASHINGTON - The Senate Thursday confirmed two of President Barack Obama's nominees to the Federal Reserve Board of Governors - nominations that had been held up since March 29 by Sen. David Vitter, R-La Vitter's action prevented the Senate from approving the nominees under an expedited procedure called unanimous consent - one that is used to confirm most nominees....
WASHINGTON - The Senate Thursday confirmed two of President Barack Obama's nominees to the Federal Reserve Board of Governors - nominations that had been held up since March 29 by Sen. David Vitter, R-La
U.S. Sen. David Vitter was photographed Jan. 30 on the trading floor of the New York Stock Exchange, speaking with specialist Joseph Mastrolia, right. Vitter's action prevented the Senate from approving the nominees under an expedited procedure called unanimous consent - one that is used to confirm most nominees.
On Thursday, the Senate easily confirmed the two nominees. Jeremy Stein, a Harvard University economist and Jerome Powell, a former equity firm manager, by going to a procedure that required a roll call vote and debate. Stein is a Democrat and Powell is a Republican.
Vitter said all he wanted was a debate on the two nominees. And the Republican senator he made clear before Thursday's vote that he disapproved of the two nominees because they support the Federal Reserve policy of near zero interest rates to provide continued liquidity for U.S. businesses.
"This Federal Reserve has set essentially a zero interest rate policy, an extremely easy policy for an extended period of time," Vitter said. He called it a "very dangerous policy."
Vitter said he didn't think important nominees should be confirmed without full debate. Senate Democratic leaders had hoped two confirm the two nominees in late March -- just before the Senate's Easter/Passover recess.
"I'm glad to have successfully forced this debate and a vote," Vitter said. "I couldn't vote for the two nominees because they clearly support the current unprecedented activist monetary policies of the Fed, and they'll make it easier for the Fed to pass further bailouts and overly burdensome regulations."
Stein was confirmed by a vote of 70-24, while Powell was approved 74-21. Vitter voted no on both nominees. Sen. Mary Landrieu, D-La., voted yes.
The White House applauded the bipartisan support for the two nominees. "Today's broad bipartisan vote in the Senate reflects their deep knowledge of economic and monetary policy, as well as their distinguished backgrounds and unique experience."
As the weeks grew after the Senate Banking Committee approved the nominees on March 29, officials from several major financial organizations, including JP Morgan Chase and Goldman Sachs, urged Vitter to drop his opposition.
Vitter refused.
But with the $2 billion in losses recently reported by JP Morgan Chase on risky investments, support grew in the Senate to give the Federal Reserve Board a full membership for the first time since 2006 so it can exert better control over financial firms.