2-6-18 12:37 PM EST | Email Article
By David Harrison 

The Senate Banking Committee will vote on Marvin Goodfriend's nomination to the Federal Reserve's board of governors on Thursday, according to a notice from the committee.

President Donald Trump nominated Mr. Goodfriend, an economist at Carnegie Mellon University, in November to fill an open seat on the seven-member board of governors. The board currently has four vacancies after former Chairwoman Janet Yellen stepped down Saturday.

Democrats questioned Mr. Goodfriend's ability to accurately predict the economy's path during his Jan. 23 confirmation hearing, a sign he may face some opposition. In particular, they criticized him for urging the Fed to quickly raise interest rates in the years following the financial crisis, warning that inflation would rise dangerously high. Inflation has undershot the Fed's 2% target for much of the past five years.

Sen. Elizabeth Warren (D., Mass.) said it would be a mistake to confirm Mr. Goodfriend.

Mr. Trump's other nominees, Chairman Jerome Powell and governor Randal Quarles, vice chairman for supervision, faced softer questioning from committee Democrats during their confirmation hearings.

At the hearing, Mr. Goodfriend said he believed Fed policy was "more or less on the right path." The Fed has been slowly raising interest rates since December 2015. Officials have penciled in three rate increases this year.

Mr. Goodfriend has also been critical of the Fed's purchases of mortgage-backed securities during and after the recession. And he has endorsed giving Congress more oversight of the central bank and using a mathematical rule to guide monetary policy. Those positions are at odds with the views of Mr. Powell, the Fed's new chairman.

The committee will also vote on Jelena McWilliams's nomination to head the Federal Deposit Insurance Corp. and on Thomas Workman's nomination to serve on the Financial Stability Oversight Council, replacing Roy Woodall. Ms. McWilliams is currently a lawyer for Fifth Third Bancorp in Cincinnati.

Ryan Tracy contributed to this article.

Write to David Harrison at david.harrison@wsj.com

 

(END) Dow Jones Newswires

February 06, 2018 12:37 ET (17:37 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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