Seats Unfilled, Fed May Have Trouble Meeting Duties

[Purveyor]

WASHINGTON — The Federal Reserve governor Jeremy C. Stein is the chairman of the internal committee that monitors financial markets for signs of trouble, and of the committee that watches the way that banks treat their customers.

He is also the only remaining member of those committees. Mr. Stein has said that on May 28 he will step down from the Fed.

A string of departures from the Fed’s seven-member board over the last year has left the central bank on the verge of operating with just three governors for the first time in its 100-year history. Three nominees are awaiting Senate confirmation, but so are scores of nominees to other offices, and Senate Democrats say there is a real chance no vote will be held before Mr. Stein departs at the end of this month.

The dwindling of the board is straining the Fed’s ability to manage its complex responsibilities, which extend well beyond its enormous economic stimulus campaign and its lead role in the overhaul of financial regulation.

It is also shifting the balance of power on the Fed’s most important group, known as the Federal Open Market Committee, which sets monetary policy. The March and April meetings of that committee — which includes both board members and presidents of the 12 regional reserve banks — represented just the third and fourth times in history that a majority of the votes were cast by the regional presidents, who are allocated five votes on the committee on a rotating basis.

Unlike the members of the Fed’s board, who are presidential appointees, those officials are selected by business leaders in each district, and they are not subject to Senate confirmation.

more...

http://www.nytimes.com/2014/05/13/business/as-seats-go-unfilled-federal-reserve-board-could-drop-to-three-members.html?hpw&rref=business&_r=0

[okaawhatever]

1. If the repubs win the Senate in 14 we are so f@#$ed. When does the Senate recess? It sounds like

a recess appointment or two needs to be arranged.

[Purveyor]

2. These committee members aren't appointed by the President.

See last paragraph.

I agree it will be difficult if we lose the Senate in '14 but the thoughts of 'them' taking all of DC in '16 isn't even comprehendable in my mind.

[okaawhatever]

3. No but the Board of Governors are, and of course the 3 noms are being held up in the Senate. One

of the biggest roadblocks is Rand Paul. He wants a vote on a bill which he claims will add accountability to the Fed, but in reality it puts the Fed under the control of Congress. Since the Fed shutting down last year would have been even worse than the gov't shutting down only the total loons want that. Paul wants the Fed under Congressional control so they can kill it, similar to what they're trying with the post office.

.

Three nominees are awaiting Senate confirmation, but so are scores of nominees to other offices, and Senate Democrats say there is a real chance no vote will be held before Mr. Stein departs at the end of this month.