But she indicated that she has no problem with Mr. Trump’s continued criticism of Mr. Powell. The president regularly criticizes the Fed on Twitter and public comments, and errs on not doing more to support the economy and push it to cut interest rates more aggressively.
She said: “I think every American and every member of Congress” and “our president” have the right to criticize the Federal Reserve, adding later that “in some ways it is refreshing that it is open in public.”
Mrs. Shelton’s nomination has raised concerns among economists and former central bankers, who question whether her close ties to Mr. Trump will interfere with her ability to work independently of the White House. Compounding these concerns is the possibility that Mrs. Shelton, who advised Mr. Trump’s presidential campaign, will be in a line behind Mr. Powell if Mr. Trump wins a second term and chooses to replace his hand-picked boss.
Another Trump nominee to the Federal Reserve, Christopher Waller, 60, appeared before the Senate Banking Committee but had a less experienced hearing. Mr. Waller, the current Research Director at the St. Louis Federal Reserve, faced only a slight examination, although he was asked some questions that reflected the questions posed to Mrs. Shelton.
Mrs. Shelton was repeatedly asked about her history in support of the gold standard, a critical approach that the United States abandoned half a century ago because it was It is considered impractical. The prevailing economists generally say that a return to the gold-backed currency, if possible, would be Economically devastating.
“She will never return with money,” said Ms. Shelton at the hearing, indicating that she was surprised to portray her as supporting the return to the traditional gold standard. At some point, Mrs. Shelton said she “would not support a return to a previous historical cash arrangement.”
In 2009, Mrs. Shelton started the Wall Street Journal Editorial With the line: “Let’s go back to the gold standard.”