Obama to renominate Nobel winning economist to Fed

WASHINGTON (AFP) – President Barack Obama plans to renominate Peter Diamond, a Nobel laureate for economics, to the US Federal Reserve Board, after he failed to secure confirmation in the just-ended Congress.

Diamond, who was honored by the Nobel committee earlier this year, has seen his nomination blocked by Republicans who argue the long-time economics professor lacks the necessary qualifications.

The Senate left town on Wednesday without voting on the nomination, but a White House official said on condition of anonymity that Obama planned to renominate Diamond next year.

The Nobel committee earlier awarded Diamond, an expert on the danger posed by systemic risk, the 2010 Nobel Prize for Economics along with fellow American Dale Mortensen and British-Cypriot Christopher Pissarides.

Obama has already renominated Diamond once, after his attempts to win confirmation were blocked.

He told AFP in an interview in October that he was still hoping to get approved.

“I am still hoping to get approved as a governor of the Fed… and working on all the things the Fed needs to address, in light of what we’ve all been through in the financial crisis,” Diamond told AFP.

“What we learned with the meltdown, what we learned with the much enlarged attention to systemic risk, is that regulating banks thought of as individual institutions is certainly important and needs to be enhanced.

“But it’s not sufficient,” he added. “We need to pay more attention to interactions across different institutions and structures.”

Obama nominated Diamond for one of seven seats on the Fed’s board of governors and its Federal Open Market Committee, which sets key interest rates.

But Republican Senator Richard Shelby blocked his nomination in August, saying Diamond, 70, did not have the necessary qualifications.

In October, Obama’s spokesman Robert Gibbs accused Republicans of playing political games with Diamond’s nomination.

“Peter’s nomination to the Federal Reserve Board of Governors continues to be held up by a partisan minority in the Senate,” he said.

“Obstructing a nominee as well-qualified as Peter in a time of economic crisis is a harmful attempt to score political points that hurts our middle class and our broader economic recovery.”

It, Obama to renominate Nobel winning economist to Fed
citation from US Economy

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Posted by on Dec 27 2010. Filed under Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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