WASHINGTON–Foes of the Federal Reserve were thrilled to watch former Rep. Ron Paul of Texas wage war on the central bank in the House and on the GOP presidential campaign trail, but lamented that he could never object where it counts most: the Senate.
Now, his son, Sen. Rand Paul (R., Ky.) has an invitation to the months-long drama that starts formally unfolding later Wednesday when President Barack Obama will announce he is nominating the current Fed vice chairwoman, Janet Yellen, to lead the central bank.
The younger Mr. Paul hasn’t said yet whether he’ll support Ms. Yellen — or what he’ll do to delay her confirmation — but he isn’t likely to let the moment pass without weighing in.
“Senator Paul looks forward to an in-depth discussion about the role and actions of the Federal Reserve while debating this nomination,” a spokeswoman said Wednesday. The first-term senator has already pushed to submit the central bank to further scrutiny, including allowing the government to review its policy deliberations.
Before Ms. Yellen contends with the opinions of Mr. Paul and other GOP senators who have deployed the Senate’s procedural delaying tactics this year, she is sure to face a barrage of questions from Republicans on the Senate Banking Committee. That panel must approve her nomination for it to advance to the Senate floor for a confirmation vote by the full chamber.
Sen. Mike Crapo of Idaho, the top Republican on the committee, indicated in a statement Wednesday morning that Ms. Yellen will face tough questions over the Fed’s aggressive bond-buying programs, often called quantitative easing, and the slew of new banking regulations being crafted as part of the Dodd-Frank financial overhaul.
“I continue to strongly disagree with the Fed’s use of quantitative easing, and am eager to learn Ms. Yellen’s vision for the direction of the Federal Reserve as we go through the nomination process,” Mr. Crapo said in the statement. “Ms. Yellen’s nomination to serve as the next chairman of the Federal Reserve Board will be carefully reviewed and considered by the Banking Committee.”
Sen. David Vitter (R., La.), also on the banking panel, plans to press Ms. Yellen on how she plans to prevent banks from growing so large and interconnected that the failure of one could imperil the financial system.
“My biggest question to Ms. Yellen will be: Will she actively push for higher capital requirements for mega-banks than regulators have announced?” Mr. Vitter said in a statement. “My biggest concerns are that she won’t, continuing to support ‘too big to fail’ and bailouts as needed, and that she’ll continue the Fed’s excessive printing of money.”
But Ms. Yellen’s nomination arrives in the Senate with plenty of cheerleaders, both on Capitol Hill and among other key allies.
The Fed vice chairwoman is “eminently qualified for the position and has the support of a wide range of economists and financial experts,” Sen. Carl Levin (D., Mich.) said in a statement Wednesday, praising her attention on the Fed’s role in bringing down unemployment. “Most importantly, she recognizes the need both for monetary policy that supports economic growth and job creation and for financial regulation that prevents a repeat of the financial crisis from which we are still recovering,” Mr. Levin said.
The Fed has a dual responsibility to keep prices stable and employment at its maximum sustainable level.
Women’s and labor groups lauded Mr. Obama for his selection of the first female chairwoman of the central bank.
“We commend President Obama for breaking the glass ceiling at this critical public institution,” Richard Trumka, president of the AFL-CIO labor group said Wednesday.
Now, his son, Sen. Rand Paul (R., Ky.) has an invitation to the months-long drama that starts formally unfolding later Wednesday when President Barack Obama will announce he is nominating the current Fed vice chairwoman, Janet Yellen, to lead the central bank.
The younger Mr. Paul hasn’t said yet whether he’ll support Ms. Yellen — or what he’ll do to delay her confirmation — but he isn’t likely to let the moment pass without weighing in.
“Senator Paul looks forward to an in-depth discussion about the role and actions of the Federal Reserve while debating this nomination,” a spokeswoman said Wednesday. The first-term senator has already pushed to submit the central bank to further scrutiny, including allowing the government to review its policy deliberations.
Before Ms. Yellen contends with the opinions of Mr. Paul and other GOP senators who have deployed the Senate’s procedural delaying tactics this year, she is sure to face a barrage of questions from Republicans on the Senate Banking Committee. That panel must approve her nomination for it to advance to the Senate floor for a confirmation vote by the full chamber.
Sen. Mike Crapo of Idaho, the top Republican on the committee, indicated in a statement Wednesday morning that Ms. Yellen will face tough questions over the Fed’s aggressive bond-buying programs, often called quantitative easing, and the slew of new banking regulations being crafted as part of the Dodd-Frank financial overhaul.
“I continue to strongly disagree with the Fed’s use of quantitative easing, and am eager to learn Ms. Yellen’s vision for the direction of the Federal Reserve as we go through the nomination process,” Mr. Crapo said in the statement. “Ms. Yellen’s nomination to serve as the next chairman of the Federal Reserve Board will be carefully reviewed and considered by the Banking Committee.”
Sen. David Vitter (R., La.), also on the banking panel, plans to press Ms. Yellen on how she plans to prevent banks from growing so large and interconnected that the failure of one could imperil the financial system.
“My biggest question to Ms. Yellen will be: Will she actively push for higher capital requirements for mega-banks than regulators have announced?” Mr. Vitter said in a statement. “My biggest concerns are that she won’t, continuing to support ‘too big to fail’ and bailouts as needed, and that she’ll continue the Fed’s excessive printing of money.”
But Ms. Yellen’s nomination arrives in the Senate with plenty of cheerleaders, both on Capitol Hill and among other key allies.
The Fed vice chairwoman is “eminently qualified for the position and has the support of a wide range of economists and financial experts,” Sen. Carl Levin (D., Mich.) said in a statement Wednesday, praising her attention on the Fed’s role in bringing down unemployment. “Most importantly, she recognizes the need both for monetary policy that supports economic growth and job creation and for financial regulation that prevents a repeat of the financial crisis from which we are still recovering,” Mr. Levin said.
The Fed has a dual responsibility to keep prices stable and employment at its maximum sustainable level.
Women’s and labor groups lauded Mr. Obama for his selection of the first female chairwoman of the central bank.
“We commend President Obama for breaking the glass ceiling at this critical public institution,” Richard Trumka, president of the AFL-CIO labor group said Wednesday.
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