Controversial Fed board pick Judy Shelton moves closer to confirmation

Catch up quick: The Fed has two vacant seats on its 7-governor board. If Waller and Shelton are confirmed, all but one of them will have been nominated by Trump. Current members have more traditional backgrounds for the Fed board.

• His prior picks to fill the 2 open slots — Nellie Liang, Stephen Moore and Herman Cain — never advanced this far in the nomination process. Marvin Goodfriend’s nomination lapsed before it got a full Senate vote.

Details: The vote to advance Shelton was along party lines. Waller was approved by an 18-7 margin, with some Democrats' support.

• A few Republican committee members said publicly earlier this year they were wary of Shelton's views, but later said they would support her nomination.

The big picture: A Fed governor can serve a full term of 12 years and plays an important role in key monetary policy decisions.

• The backdrop: The vote comes in the middle of an economic crisis caused by the pandemic, where the Fed has taken unprecedented action to support key funding markets and the economy.
• It’s the members of the Fed board who decide on key emergency relief measures like the ones the Fed has announced.
• Trump has chastised Fed chair Jerome Powell, appointed during his administration, throughout his term. In recent months, he’s praised the Fed for its response to the economic downturn.

What’s next: The full Senate will vote on whether to appoint Shelton and Waller to the Fed board.