–Senate Banking Panel Lavish Praise On Yellen, Diamond, Raskin
–Senate Banking Chief Dodd: Hopes Senate Approves Nominees Promptly

By John Shaw

WASHINGTON (MNI) – Members of the Senate Banking Committee Thursday
urged President Obama’s three nominees to the Federal Reserve Board to
be aware of the Fed’s dual mandate, but to focus sharply on boosting
growth.

In a confirmation hearing for Janet Yellen to serve as vice
chairman and Peter Diamond and Sarah Bloom Raskin to serve as Fed
governors, members of the panel focused on the nation’s still struggling
economy.

Banking Committee Chairman Chris Dodd said while there is evidence
the American economy is growing, “it’s not growing fast enough.”

Dodd said the central bank will be needed to help strengthen the
U.S. economy, adding the economy will “need all the help the Fed can
provide.”

Sen. Richard Shelby, the ranking Republican on the panel, said the
U.S. economy appeared to be emerging from the recession earlier this
year, but has “hit another soft patch.”

Shelby told Yellen, Diamond and Raskin that, if confirmed, they
will “face difficult and important decisions for the American economy.”

Sen. Jack Reed, a senior Democrat on the panel, said he believes
that policymakers “need to focus on unemployment.”

While the nation faces various economic challenges, the preeminent
one is “solid growth in employment that is sustainable,” Reed said.

Republican senator Judd Gregg said the Fed will face enormous
challenges, given deeply flawed fiscal policies that threatens the
nation’s long-term economic health.

The Fed, Gregg said, is the “only stabilizing force” overseeing the
U.S. economy “because the Congress is so irresponsible.”

“This is going to be one of the most critical periods for the
Federal Reserve,” Gregg said.

The portion of the Banking Committee hearing devoted to the three
Fed nominees was less than 90 minutes, with much of the time devoted to
opening statements by the senators and Yellen, Diamond and Raskin.

Dodd and Shelby appeared only briefly at the hearing because they
are also involved in the Senate debate on financial regulatory reform
which is now taking place on the Senate floor.

Before leaving the hearing, Dodd said he hopes the Senate can
approve the three Fed nominations promptly, but he gave no specific time
frame.

** Market News International Washington Bureau: (202) 371-2121 **

[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$,MCU$$$]