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Thursday, August 05, 2010

Romer Leaves as Head of CEA

Some news:

Romer Leaves as Head of Council of Economic Advisers, by Gerry Mullant, NY Times: Christina D. Romer, the chairwoman of the White House Council of Economic Advisers, will step down from the post next month, the White House announced Thursday night.

Her resignation comes as the Obama administration continues grappling with a choppy economy as it heads into the midterm elections. ... There was no word on Ms. Romer’s successor.

Update: More news:

Senate rejects Fed nominee Diamond before voting, Reuters: The Senate on Thursday scrapped the nomination of Peter Diamond to the Federal Reserve Board, dealing a blow to President Barack Obama's push to fill long-standing vacancies at the central bank.
The Senate returned the nomination to the White House, effectively killing it, according to aides to Senate majority leader Harry Reid. ...
Diamond, an MIT professor and expert on taxes and Social Security, faced opposition from Republicans in the Senate Banking Committee... Richard Shelby, the committee's top Republican, said Diamond did not have the right sort of experience for the job.
"I do not believe the current environment of uncertainty would benefit from monetary policy decisions made by board members who are learning on the job," Shelby said before the committee's vote.

The full Senate had been expected to consider Diamond's nomination, along with those of Janet Yellen and Sarah Raskin, when it returned from its summer recess. It was unclear whether Obama would resubmit Diamond's nomination or nominate someone else to fill the post. ...

Update: Here's a bit more clarity on what is happening with the Diamond nomination:

The Senate sent the nomination of Peter Diamond, one of President Barack Obama’s three nominees for the Federal Reserve Board, back to the White House because of objections from at least one lawmaker.

The office of the executive clerk of the Senate said the procedural move occurred as part of actions taken on nominees without debate before the chamber left for a summer break. Don Stewart, a spokesman for Senate Republican Leader Mitch McConnell, said the White House may resubmit the nomination. ...

Under Senate rules, all nominations that aren’t completed before a lengthy recess go back to the White House and have to be resubmitted unless the Senate unanimously agrees to hold onto them and act later, Stewart said. Routinely, the Senate does agree to retain the nominations. If a single senator objects, the name goes back to the president’s office. In Diamond’s case, at least one senator did that. ...

Update: On Romer's resignation, Tyler Cowen links to:

one commentary, which I cannot vouch for; it concerns a potential clash with Summers.

There's also this and others along similar lines. I didn't link to these accounts for the same reason, I had no way of knowing if it they were accurate. So I can't offer any help on how much weight should be given to the claim that the resignation is due, at least in part, to a clash with Summers.

    Posted by on Thursday, August 5, 2010 at 06:51 PM in Economics | Permalink  Comments (52)


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