The title of this post is misleading. To those in the know, the Fed has largely always been a semi political body. However its disgusting that Washington is petty enough to hold back a nomnition simply because the president nominated him and the Senate wants to score cheap points. This happened in GWB’s presidency as well, and it was not any more acceptable then either. the difference here is how obvious an act of hackery it is. The nominee, Peter Diamond, a man who WON A NOBEL PRIZE WHILE WAITING TO BE CONFIRMED, withdrew his nomination on Thursday, citing the gridlock regarding his nomination.
The laughable part, via Reuters
Richard Shelby, had criticized Diamond for lacking monetary policy experience. Observers say Diamond also fell victim to payback from Republicans angered by Democratic obstruction of a Fed nominee put forward by Republican President George W Bush.