Conservative group urges senators to vote against Yellen
Heritage Action, a conservative group that was active in pushing for the effort to defund Obamacare, on Monday said it was labeling a “no” vote on the nomination for Janet Yellen to lead the Federal Reserve a so-called “key” vote.
By making it a key vote, it means the Yellen vote will be used on the scorecard of the organization — making it especially important to senators facing a challenge in a Republican primary.
Heritage quoted a 2010 warning when Yellen needed to be confirmed as vice chairwoman to the Fed. “With a new flock of doves winging their way to the Fed, inflation worries have only gotten worse,” Heritage quoted its own J.D. Foster as saying.
Never mind that Foster’s warning wasn’t prescient: the Cleveland Fed’s latest estimate of 10-year expected inflation is just 1.72%.
Heritage also took umbrage with Yellen’s comment that she will use the Fed’s expanded powers to “level the playing field” between large banks and small.
In any event, now that the Senate has invoked the so-called “nuclear” option, senators won’t be in a position to block the Yellen nomination with just 40 votes, meaning Republicans would have to find Democrats willing to join them. They have won one Democrat to their side, West Virginia’s Joe Manchin.
However, in the Senate Banking Committee, Yellen’s nomination won three votes from Republicans — Bob Corker of Tennessee, Mark Kirk of Illinois and Tom Coburn of Oklahoma.
It seems that those Democrats who voted against Bernanke last time should have more reason to vote against Yellen. I can’t figure it out.