Yglesias notices something that the rest of us in financial compliance have been wary about: there are two open seats on the Fed Reserve Board of Directors
This is really bad.
One of those seats is vacant because Senator Richard Shelby (R-AL) thought an economist with a Nobel Prize wasn’t qualified for the job. The nominee in question withdrew, and Obama hasn’t named anyone else. The second open slot nobody’s ever been nominated for. It seems to me that with two seats open, it ought to be possible to work something out. And if it’s not possible to work something out, then there ought to be a partisan fight. Just letting the power to appoint people to the most important economic policymaking institution in the country languish isn’t an acceptable outcome. The single largest influence on President Obama’s re-election prospects is the short-term performance of the economy, and the single largest influence on the short-term performance of the economy is the Fed.
There are seven seats for a reason. It balances out possible rush to judgement by any member, and brings more voices to the conversation. It’s unlikely this will get solved soon, but I’m disgusted that it’s gone this far.