10.25.17

Washington, D.C.— Twenty-two organizations released a letter to the Senate Banking Committee urging members to reject nominees to the Federal Reserve who would undermine the Fed’s full employment mandate and otherwise win back economic progress made in recent years. Citing the creation of millions of job under the leadership of current Chair Janet Yellen, prominent labor organizations like the International Federation of Professional & Technical Engineers (IFPTE), racial justice groups like the National Association for the Advancement of Colored People (NAACP) and National Urban League, and progressive organizations including the Center for American Progress urged Yellen’s re-appointment and encouraged senators to reject potential nominees like Kevin Warsh and John Taylor-- two Fed chair contenders who have suggested they would pursue interest rate increases and roll back financial protections made by current Fed officials.

“Janet Yellen has done more than many of her predecessors to achieve the Fed’s mandate and bring our economy close to full employment. Her re-appointment would win strong bipartisan support. Trump has promised jobs and growth and his choice for Fed Chair is the decision that will most impact how he performs on those promises. Yellen’s record shows that she can deliver jobs and growth better than any other candidate for Fed Chair,” said Jordan Haedtler, campaign manager for the Fed Up coalition, which organized the letter. “If Trump ignores the advice of economists, manufacturers, racial justice groups, labor organizations, and many more, and nominates Kevin Warsh or John Taylor instead of Yellen, he risks picking a huge, unnecessary fight that would undermine his own economic agenda.”

The letter sets the stage for potentially contentious confirmation fights as President Trump decides what to do with three remaining vacancies at the Board of Governors. Federal Reserve Chairs have historically won confirmation with widespread bipartisan support. With the economy still reeling from the financial crisis, 30 senators opposed the confirmation of former Federal Reserve Chair Ben Bernanke in 2010, setting a record for the highest number of No votes to the position. The wide range of organizations opposing Warsh and Taylor suggests that that record could be surpassed should Trump opt to nominate Taylor, Warsh, or another high interest rate hawk to the Fed.

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Contact: Jordan Haedtler, (650) 400-4116, jhaedtler@populardemocracy.org