Federal Reserve Board nominee Peter Diamond announced in a New York Times op-ed Monday morning that he will withdraw from the nominating process, complaining both of politcization of the process and "a failure to recognize that analysis of unemployment is crucial to conducting monetary policy."
Taking on Sen. Richard Shelby, R-Ala. -- who has questioned how relevant Diamond’s academic work is to a position monitoring monetary policy -- Diamond asserts that his study of unemployment and the labor market would be “critical to devising an effective monetary policy.”
Diamond takes a few pointed shots at Republicans, who held up his nomination, in the op-ed.
“I won the Nobel Prize in economics for my work on unemployment and the labor market,” Diamond writes. “But I am unqualified to serve on the board of the Federal Reserve -- at least according to the Republican senators who have blocked my nomination.”
Later, he assures readers that instead of working at the Fed, he will continue teaching and will “take advantage of some of the many opportunities that come to a Nobel laureate. So don’t worry about me.”
But Diamond also warns the public at large, noting, “we should all worry about how distorted the confirmation process has become, and how little understanding of monetary policy there is among some of those responsible for its Congressional oversight.”
“We need to preserve the independence of the Fed,” he continues, “from efforts to politicize monetary policy and to limit the Fed’s ability to regulate financial firms.”
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