February 13, 2020

Crapo Statement at Nomination Hearing

WASHINGTON – U.S. Senator Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, delivered the following remarks at a hearing for nominees to the Federal Reserve Board of Governors.  

The text of Chairman Crapo’s remarks, as prepared, is below.  

“This morning, we will consider the nominations of the Honorable Judy Shelton to be a Member of the Board of Governors of the Federal Reserve System and Dr. Christopher Waller to be a Member of the Board of Governors of the Federal Reserve System. 

“Welcome, and congratulations on your nominations to these important positions. 

“I see friends and family sitting behind you, and I welcome them as well. 

“We are fortunate to have these two highly qualified nominees appearing today.   

“These positions are critical to ensuring a safe, sound and vibrant financial system, and a healthy, growing economy.  

“The Federal Reserve was created by Congress as the nation’s central bank to promote a stable economy, and a safer, more flexible financial system.   

“Among the Federal Reserve’s responsibilities is conducting the nation’s monetary policy with the mandate of promoting maximum employment, stable prices and moderate long-term interest rates. 

“In addition to its monetary policy role, it oversees a significant portion of the banking sector, including large, regional and community banks, as well as certain nonbanks, and aims to foster a safe and efficient payment and settlement system. 

“With this in mind, it is important that we nominate and confirm well qualified candidates with different perspectives to the positions of Governors to ensure robust debate and more effective decisions.  

“Before turning to Dr. Shelton and Dr. Waller, I am entering into the record a letter from over one hundred economists supporting the nomination of Dr. Waller, and also an article from the Wall Street Journal supporting Dr. Shelton, titled, ‘The War on Judy Shelton.’ 

“Dr. Shelton most recently served as the Executive Director for the European Bank for Reconstruction and Development and was confirmed by voice vote in the Senate in 2018. 

“Dr. Shelton’s experience working for nonprofits and academic institutions forged her deep knowledge of democracy, economic theory and monetary policy that will broaden and diversify the Fed’s perspective. 

“Dr. Waller has served as the Research Director at the Federal Reserve Bank of Saint Louis for the last 11 years, and aided the President of the Saint Louis Fed in analyzing the economy and recommending U.S. monetary actions. 

“His research on monetary theory and the micro-foundations of money and payment systems will be valuable, as we are seeing a rise in cryptocurrencies and digital currency in this country and abroad. 

“I am confident that Dr. Shelton and Dr. Waller will bring strong leadership to the Federal Reserve System.  

“As Governors at the Federal Reserve, Dr. Shelton and Dr. Waller will play key roles in carrying out the Fed’s regulatory and supervisory activities consistent with the law, while also playing an important role in striking the balance between tailored regulations and supervision, and safety and soundness.   

“I appreciate the positive meetings I had with each of you leading up to today’s hearing, and I look forward to continuing a robust discussion on the following topics: 

“The importance of right-sizing regulations and tailoring the supervisory framework to support a vibrant, growing economy while also ensuring a safe and sound financial system; 

“Assessing market-based fixes to maintain stability in money markets; and 

“The development of central bank digital currencies and other technological innovations in the financial space, which we also discussed with Chairman Powell yesterday; and “Continuing to encourage the Federal Reserve to submit all rules to Congress under the Congressional Review Act, as well as submit all significant guidance for purposes of the Congressional Review Act. 

“I look forward to working with Dr. Shelton and Dr. Waller on these and other areas where the Fed and Congress can act to further reduce unnecessary burdens and promote economic growth.  

“Congratulations again on your nominations, and I thank you and your families for your willingness to serve.”