A problem with US monetary policy is that a number of seats on the Federal Reserve Board of Governors remain vacant.
Obama has finally nominated some folks, academic Peter Diamond, San Francisco Fed President Janet Yellen and Maryland regulator Sarah Raskin, but Diamond, who is more concerned about deflation than inflation, has been filibustered by the Republicans.
It's their plan: Put inflation hawks in, tighten rates and turn us into Estonia, and reap the political rewards.
Obviously, there is the recess appointment, there are consequences:
- It may harm White House - Senate relations, which makes it difficult for the Senate to approve someone who has already been recess appointed.
- Obama has regrettably declared recess appointments "extraordinary", tying his hands.
The solution: Appoint someone
even more extreme in their views, with the explicit statement that when the nominee gets a "straight up or down vote," this leaves.
If they filibuster:
- A Fed Governor, appoint James K. "Jamie" Galbraith.
- An NLRB member, appoint James Hoffa or Andy Stern.
- An FEC member, Appoint Fred Wertheimer.
- Etc.