US Senate fails to advance Trump's controversial Fed nominee

WASHINGTON -- The US Senate on Tuesday voted to reject a move to advance President Donald Trump's controversial nomination of Judy Shelton to the Federal Reserve Board.

The Senate voted 47-50 to end debate on Shelton's nomination, falling short of the simple majority needed, as all Democrats and several Republicans voted against advancing the nominee.

"Ms. Shelton is, without a doubt, one of the least qualified nominees I have ever seen for our nation's central bank," Senate Democratic Leader Chuck Schumer said Tuesday on the Senate floor before the vote.

"For years, Ms. Shelton has advocated for the resurrection of the gold standard, a long since discarded policy that in part led to the Great Depression. She has questioned the independence of the Fed, and beyond that, has even questioned whether the Fed should exist," Schumer said.

"That's why over 130 of the nation's top economists-including seven Nobel laureates-have opposed her nomination, as have countless alumni of the Federal Reserve Board of Governors," he added.

But White House deputy press secretary Judd Deere said that Shelton is "incredibly qualified" and the White House "fully supports" her.

"We remain confident that Judy Shelton will be confirmed upon reconsideration," Deere tweeted.

Trump announced his intention to nominate Shelton, a conservative economist who advised Trump's 2016 presidential bid, for a vacancy on the Fed's board of governors in July 2019.

Earlier this year, the Senate Banking Committee approved Shelton's nomination by a party-line vote, with all Democrats on the panel opposing her nomination.