Judy Shelton

Judy Lynn Shelton is an American economic advisor to former President Donald Trump.[2] She is known for her advocacy for a return to the gold standard and for her criticisms of the Federal Reserve (which she has compared to the Soviet Union's economic planning).[2][3][4][1] Trump announced on July 2, 2019, that he would nominate Shelton to the Fed.[5][6][7] Her nomination stalled on November 17, 2020, with a 47–50 vote in the Senate, and her prospects for confirmation dimmed after Democrats took control of the Senate in January 2021.[8][9][10]

Judy Shelton
Personal details
Born1954/1955 (age 65–66)[1]
Los Angeles, California, U.S.
Political partyRepublican
Spouse(s)Gilbert Shelton
EducationPortland State University (BS)
University of Utah (MBA, PhD)

During the Obama presidency, she advocated for a tight monetary policy, but flip-flopped on that position during Trump's presidency (when Trump advocated against a tight monetary policy).[11][12] Her nomination was held up in the Senate, as senators on both sides of the aisle were skeptical of her.[12] However, shortly after Joe Biden won the presidential election, Senate Republicans appeared to move ahead to confirm her.[12] More than 100 economists, including seven Nobel laureates, signed a letter opposing her confirmation, saying her views were "extreme and ill-considered."[13] She ultimately could not retain enough Republican support after senators Rick Scott (R-Fla.) and Chuck Grassley (R-Iowa) were absent due to exposure of COVID-19, and two present Republicans voted against and one absent one did not support her.[14]

Early life and education

Shelton was born in Los Angeles and raised in suburban San Fernando Valley. She is one of five children; her father was a businessman and her mother was a homemaker.[15] Shelton attended Portland State University, where she earned her Bachelor of Science in business.[16] Shelton earned her MBA and PhD in business administration from the University of Utah.[16][17][18]

Politics

She worked at the Hoover Institution from 1985 to 1995.[1] She worked on Bob Dole's 1996 presidential campaign.[1] In 2016, she worked for the Ben Carson presidential campaign, but joined the Trump campaign in August 2016 after writing a supportive opinion editorial about Trump in The Wall Street Journal.[1]

In 2012, Judy Shelton joined TheGoldStandardNow.Org as a senior advisor.[19]

Before joining the Trump administration, she was the director of the Sound Money Project[20] at the Atlas Network. In a video interview with The Atlas Network, she described currency counterfeiter Bernard von NotHaus as "the Rosa Parks of monetary policy."[21] She has donated to conservative candidates and causes.[1]

In March 2018, she was confirmed by the U.S. Senate as the United States director of the European Bank for Reconstruction and Development.[22][1] The Wall Street Journal reported that she was absent for 12 of 28 board meetings during her tenure.[23]

Views on monetary policy

Shelton is known as a critic of the Federal Reserve.[4][1] She said in 2011 that the Federal Reserve is "almost a rogue agency," and asked whether it could be trusted in having oversight of the dollar.[24] "She has called for a 0% inflation target, contradicting the bank's current 2% target.[25] She has written that a "fundamental question" of economics is "why do we need a central bank?"[26] Shelton has criticized the Federal Reserve's longstanding policy of independence from the White House, saying in 2019 interview that she saw "no reference to independence" in the Fed's authorizing legislation.[27] Shelton describes herself as "highly skeptical" of the Federal Reserve's "nebulous" dual mandate of maximum employment and price stability.[28]

During the Obama years, she criticized the Federal Reserve's low interest rates.[29][30][31] During the Trump presidency, she advocated for the Federal Reserve to adopt lower interest rates as a form of economic stimulus. (Trump frequently criticized the Federal Reserve for not lowering interest rates.)[3][29][32] She supports the Republican Party's Tax Cuts and Jobs Act, and the Trump administration's deregulative agenda.[1] Before Trump became president, she was a longtime advocate for free trade, but after he became president, she supported his administration's trade war with China.[1][33]

Shelton opposes federal deposit insurance. In her book Money Meltdown, she writes that "Eliminating federal deposit insurance would restore the essential character of banking as a vehicle for channeling financial capital into productive investment while striving to meet the risk and timing preference of depositors."[34]:305

Shelton is a long-time proponent of pegging the value of the dollar to gold.[35] In 2019, she said that she hoped for a new Bretton Woods-style conference where countries would agree to return to the gold standard, saying, "If it takes place at Mar-a-Lago that would be great."[36] (Mar-a-Lago is a resort run by President Trump.)

Shelton supports a highly integrated financial system, including a global common currency and a universal gold reserve bank.[37][38] In 2000, she advocated for open borders with Mexico,[33] and said that "even better would be a global common market with a single worldwide currency."[39] She has favored virtual currencies that compete against the U.S. dollar.[39]

Nomination to Federal Reserve

On July 3, 2019, President Donald Trump used his Twitter account to announce his intention to nominate Shelton and a regional Fed official, Christopher Waller, to the Federal Reserve board. His previous nominees, former presidential contender Herman Cain and economic commentator Stephen Moore, had withdrawn for lack of Senate support.[22][40] During the months in which Shelton was being considered for the post by Trump, she was a guest at the Trump International Hotel, Washington, D.C..[22]

During her February 2020 confirmation hearings, both Republicans and Democrats on the Senate Banking Committee expressed concerns about her writings and statements.[41][42][43] On July 21, 2020, a 13–12 vote along party lines advanced Shelton's nomination to the full Senate.[44] On September 15, 2020, Senator John Thune, Republican Whip, announced that Shelton would not be brought up for a vote until she had the 51 votes required to confirm her to the Federal Reserve.[45]

In August, 130 economists, including seven with Nobel prizes, recommended the Senate reject her nomination, asserting she was unfit because her views were "extreme and ill-considered" and the Fed needed to maintain its "nonpartisan approach."[46] Seventy-eight former Federal Reserve economists, attorneys and bank presidents also signed the letter.[47][48]

On November 12, Alaska Senator Lisa Murkowski voiced her support for Shelton's nomination.[49] On November 16, Sen. Lamar Alexander (R-Tenn.) said he would not support the nomination.[50]

On November 17, 2020, the motion to invoke cloture on the Shelton nomination failed in a 47–50 split.[8] Republican senators Rick Scott (R-Fla.) and Chuck Grassley (R-Iowa) could not be present as crucial Republican votes needed to confirm Shelton's nomination due to quarantine measures enforced after being exposed to COVID-19.[14] All Democratic senators along with the Republican senators Mitt Romney, and Susan Collins voted against her nomination, with Lamar Alexander stating he opposes the nomination but was not present for the vote.[51] On January 3, 2021, her nomination was returned to the President under Rule XXXI, Paragraph 6 of the United States Senate.[43] On February 4, 2021, President Joe Biden withdrew her nomination to the Federal Reserve.[52]

Personal life

Shelton is married to Gilbert Shelton.[1] The Sheltons had eleven French Charolais cattle, six dogs and peacocks as of 2009.[53] Her husband is a former entrepreneurial banker in Utah, Colorado, and Hawaii who sold his businesses in the early-1980s. They have lived at Moss Neck Manor, a historic antebellum plantation house in Rappahannock Academy, Virginia, since 2005. The property borders Fort A.P. Hill.[53][54]

Bibliography
  • Money Meltdown: Restoring Order to the Global Currency System. The Free Press. 2014 [1994]. ISBN 978-1439188460.
  • The Coming Soviet Crash: Gorbachev's Desperate Pursuit of Credit in Western Financial Markets. The Free Press. 1989 [1985]. ISBN 978-0029285817. OCLC 25259724.

References
  1. Smialek, Jeanna (May 21, 2019). "Trump Team Vets Fed Critic for Board Seat". The New York Times. ISSN 0362-4331. Retrieved May 31, 2019.
  2. Politi, James (November 12, 2020). "Senate prepares to vote on Trump's Fed board nominee Judy Shelton". Financial Times. Archived from the original on November 13, 2020.
  3. Long, Heather (June 19, 2019). "Trump's potential Fed pick Judy Shelton wants to see lower rates 'as expeditiously as possible'". The Washington Post.
  4. Heeb, Gina (May 22, 2019). "Trump's potential Fed pick is a critic of the central bank and supports near-zero interest rates". Markets Insider. Business Insider. Retrieved May 31, 2019.
  5. Kiernan, Paul; Harrison, David (July 2, 2019). "Christopher Waller, Judy Shelton Are Trump's Latest Picks for Fed Board". The Wall Street Journal.
  6. Long, Heather (November 21, 2019). "Trump's Fed nominee Judy Shelton recently questioned the need for an independent central bank". The Washington Post. Retrieved December 28, 2019.
  7. Collins, Peggy (February 3, 2020). "Senate to Hold Hearing for Fed Nominees Shelton, Waller Feb. 13". Bloomberg.
  8. Taylor, Andrew; Rugaber, Christopher (November 17, 2020). "Controversial Fed nominee Judy Shelton stalls in Senate test vote". The Boston Globe. Associated Press. Retrieved November 17, 2020.
  9. Taylor, Andrew; Rugaber, Christopher (November 17, 2020). "Controversial Fed nominee Shelton stalls in Senate test vote". AP News. Associated Press.
  10. Homan, Timothy R. (January 10, 2021). "Wall Street braces for tougher rules under new Democratic majority". TheHill.
  11. Wasson, Erik; Condon, Christopher; Litvan, Laura (November 12, 2020). "Senate Takes First Step to Vote on Shelton Fed Confirmation". Bloomberg. Retrieved November 12, 2020.
  12. Brown, Courtenay (November 13, 2020). "Controversial Trump Fed board pick Judy Shelton gets closer to confirmation". Axios. Retrieved November 13, 2020.
  13. Murphy, Mike (September 2, 2020). "Economists, including 7 Nobel winners, urge Senate to reject Judy Shelton's Fed nomination". MarketWatch. Retrieved November 13, 2020.
  14. Carney, Jordain (November 17, 2020). "Grassley quarantining after exposure to coronavirus". The Hill. Retrieved November 17, 2020.
  15. "Q&A with Judy Shelton". C-SPAN.org. Retrieved July 27, 2020.
  16. "The Coming Soviet Crash". C-SPAN.org. February 16, 1989. Retrieved on 3 July 2019.
  17. "Judy Shelton, Ph.D".
  18. "Q&A with Judy Shelton". C-SPAN.org. November 4, 2009. Retrieved on 3 July 2019.
  19. Packard, Kathleen (January 11, 2012). "Economist and Author Judy Shelton Appointed as Senior Advisor to The Gold Standard Now". PRWeb.
  20. "This Trump Economic Advisor Wants America to Go Back to the Gold Standard". Fortune.
  21. Sound Money Project Interview Series: Dr. Judy Shelton (Full Version), retrieved February 4, 2020
  22. Smialek, Jeanna (July 2, 2019). "Trump Taps Two Fed Nominees, One Conventional, the Other Not". The New York Times. ISSN 0362-4331. Retrieved July 3, 2019.
  23. Kiernan, Paul (July 25, 2019). "Prospective Fed Nominee Judy Shelton Resigned From EBRD Job". Wall Street Journal.
  24. Andrew Kaczynski; Em Steck. "Trump's Fed pick Judy Shelton called the central bank 'almost a rogue agency' in 2011". CNN. Retrieved February 23, 2020.
  25. Heeb, Gina (June 8, 2019). "Trump's potential Federal Reserve nominee wants a 0% inflation target". Business Insider. Retrieved February 4, 2020.
  26. Shelton, Judy (March 27, 2009). "Did the Fed Cause the Housing Crisis". Wall Street Journal. Retrieved February 4, 2020.
  27. Mohsin, Saleha (November 21, 2019). "Trump's Fed Pick Judy Shelton Cast Doubt on Central Bank Independence". Bloomberg. Retrieved February 4, 2020.
  28. Condon, Christopher (May 30, 2019). "Fed Hopeful Shelton Questions Value of Bank's Dual Mandate". Bloomberg. Retrieved February 4, 2020.
  29. Yglesias, Matthew (June 5, 2019). "Judy Shelton's potential nomination to a Federal Reserve Board seat, explained". Vox. Retrieved July 3, 2019.
  30. Shelton, Judy (May 13, 2015). "Reckoning for the Fed". TheHill. Retrieved July 3, 2019.
  31. Shelton, Judy. "A Trans-Atlantic Revolt Against Central Bankers". WSJ. Retrieved July 3, 2019.
  32. "Trump Taps Economists for Two Key Fed Positions". Time. Retrieved July 3, 2019.
  33. "Trump Fed nominee Judy Shelton once advocated for 'open borders' with Mexico". The Washington Post. 2019.
  34. Judy Shelton (2014). Money Meltdown. The Free Press. ISBN 978-1439188460.
  35. Guida, Victoria. "Trump Fed pick's push for gold troubles lawmakers". Politico. Retrieved July 28, 2019.
  36. "Fed candidate slams bank's 'Soviet' power over markets". Financial Times. Retrieved May 31, 2019.
  37. Shelton, Judy (May 2015). "Gold and Government" (PDF). Cato Institute. Retrieved February 4, 2020.
  38. Shelton, Judy (July 16, 1999). "Global Markets Need Golden Rule". The Wall Street Journal. Retrieved February 4, 2020.
  39. Long, Heather (February 12, 2020). "10 of Trump Fed nominee Judy Shelton's most controversial quotes". The Washington Post.
  40. "The Fed shouldn't be driving US economy, Trump advisor Judy Shelton says". December 7, 2016.
  41. Timiraos, Nick; Chaney, Sarah (February 14, 2020). "Path to Confirmation Dims for Fed Nominee After Republican Objections". The Wall Street Journal. Retrieved February 17, 2020.
  42. Schneider, Howard; Dunsmuir, Lindsay (February 13, 2020). "Trump Fed nominee Shelton hits bipartisan skepticism in Senate hearing". Reuters. Retrieved February 22, 2020.
  43. "PN1422 – Judy Shelton – Federal Reserve System". Library of Congress. January 28, 2020. Retrieved March 6, 2020.
  44. "Senate banking committee approves controversial nominee Judy Shelton for Federal Reserve board". NBC News. Retrieved July 21, 2020.
  45. Tappe, Anneken; Mattingly, Phil; Barrett, Ted. "Trump's Fed pick doesn't have the votes". CNN. Retrieved September 15, 2020.
  46. Murphy, Mike. "Economists, including 7 Nobel winners, urge Senate to reject Judy Shelton's Fed nomination". MarketWatch.
  47. Marte, Jonnelle (August 21, 2020). "Former Fed staffers urge U.S. Senate to reject Shelton nomination" – via www.reuters.com.
  48. Issues, Federal Reserve System (August 20, 2020). "Fed Alumni Urge Senate Rejection of Fed Nominee Shelton". Medium.
  49. Byrnes, Jesse (November 12, 2020). "Murkowski to back Trump's Fed nominee Judy Shelton". TheHill. Retrieved November 17, 2020.
  50. Siegel, Rachel; Kim, Seung Min (November 16, 2020). "A third GOP senator comes out against Trump's Fed nominee, putting confirmation vote on knife's edge". The Washington Post.
  51. Cox, Jeff (November 17, 2020). "Shelton Fed nomination fails key Senate procedure vote, possibly ending her chances". CNBC. Retrieved November 17, 2020.
  52. https://thehill.com/policy/finance/537457-biden-withdraws-judy-sheltons-fed-nomination
  53. Freehling, Bill (November 14, 2009). "A worldview as seen from Moss Neck". The Free Lance–Star. Fredericksburg, Virginia: BH Media. Retrieved July 2, 2019.
  54. Sidersky, Robyn (April 12, 2015). "Moss Neck Manor is a hidden gem in Caroline County". The Free Lance–Star. Retrieved July 3, 2019.
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