WASHINGTON Members of the Senate Banking Committee quickly took sides over the nomination of Janet Yellen to head the Federal Reserve Board, even though it is apparent she likely will win confirmation.
President Obama made the formal announcement of Yellen's nomination at the White House yesterday, but lawmakers did not wait for that before weighing in. Republicans such as Sens. Bob Corker and Mike Crapo, the top GOP member of the banking panel, were quick to voice hesitations about the potential nominee.
"The next Fed chair faces a unique set of challenges, including winding down unconventional monetary policy, implementing a long list of unfinished rules under Dodd-Frank without over-regulating the community banking sector, and effectively communicating future policies to the markets and the public," said Crapo, who added he would be "eager" to hear Yellen's vision for the direction of the Fed on its quantitative easing policy.
Corker, meanwhile, was more direct, noting that he voted against Yellen's vice chairman nomination in 2010 because of her "dovish views" on monetary policy.
"I am not aware of anything that demonstrates her views have changed," Corker said in a statement.
Senate Democrats, however, were united in backing Yellen, with Sens. Tim Johnson, chairman of the Banking Committee, Chuck Schumer of New York, Elizabeth Warren of Massachusetts and Sherrod Brown of Ohio lending the central banker their support.
In a statement, Johnson said he would work with Crapo "to move her nomination forward in a timely manner."
Yet observers warned Republicans not to go too far in opposing Yellen, noting the historic nature of her nomination as the first woman to chair the Fed.
"Opposing her would be harmful to the party," wrote Sheila Bair, the former chairman of the Federal Deposit Insurance Corp., in a CNN/Fortune op-ed. "This would be a historic nomination. She would be the first woman to head the Federal Reserve. And by blocking her, the GOP will risk the public perception that they oppose her because she is outside the male-dominated Wall Street club."
