|00:00:00||TO THANK AND HONOR MY GOOD FRIENDS AND ESTEEMED COLLEAGUES, SENATOR ALEXANDER AND SENATOR JOHANNS.|
|00:00:07||THE WILLINGNESS TO VOTE ON TWO OF THE PRESIDENT'S NOMINEES TO SERVE AS MEMBERS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE THAT THEY EXPRESS TODAY IS EXACTLY THE SORT OF BIPARTISAN APPROACH THAT HAS HISTORICALLY MADE THE SENATE WORK.|
|00:00:18||I'D LIKE TO HONOR THEIR EFFORTS TO GET US BACK TO THAT PROUD TRADITION AND THANK THEM FOR THEIR EFFORTS TO BRING THESE TWO DISTINGUISHED MEN TO VOTE.|
|00:00:27||SERVING ON THE BANKING COMMITTEE TOGETHER, I KNOW SENATOR JOHANNS TO ALWAYS DO HIS DUE DILIGENCE WHEN REVIEWING ANY PROPOSED LEGISLATION OR, IN THIS CASE, NOMINEES, AND I'M ALSO GRATEFUL TO MY GOOD FRIEND, SENATOR ALEXANDER, WHO'S THE RANKING MEMBER OF THE RULES COMMITTEE.|
|00:00:43||HIS HARD WORK AND INSIGHT WERE INVALUABLE WHEN WE WORKED TOGETHER TO STREAMLINE PRESIDENTIAL APPOINTMENTS, TO PASS A BILL IN THE SENATE TO REDUCE THE NUMBER OF POSITIONS REQUIRING SENATE CONFIRMATION.|
|00:00:54||HE'S ALWAYS WORKED FOR THE BETTERMENT OF THIS BODY AND TODAY IS ANOTHER EXAMPLE.|
|00:01:00||YET DESPITE OUR WORK LAST YEAR, WE STILL FACE A BACKLOG OF NOMINATIONS THAT GRIDLOCKS OTHER IMPORTANT LEGISLATIVE WORK.|
|00:01:08||THE SENATE WAS DESIGNS TO BE A THOUGHTFUL AND DELIBERATE BODY, BUT ALL OF AMERICA'S HARMED WHEN WE'RE NOT ABLE TO GET QUALIFIED PEOPLE CONFIRMED TO POSITIONS IN A TIMELY MANNER.|
|00:01:20||NOMINEES OF IMPECCABLE QUALIFICATIONS AND INDISPUTABLE SUPPORT HAVE TOO OFTEN BEEN FROZEN OUT OF THE CONFIRMATION PROCESS AND THAT'S NOT THE CASE NOW.|
|00:01:29||AT THIS TIME WHEN OUR ECONOMY IS STRUGGLING TO MAINTAIN FORWARD MOMENTUM AND THE FEDERAL RESERVE IS FACED WITH DIFFICULT DECISIONS ABOUT HOW TO HELP THE RECOVERY WITHOUT CREATING PROBLEMS IN THE FUTURE, IT'S CRITICAL WE NOT LEAVE THE FED UNDERMANNED.|
|00:01:44||FOR MONTHS NOW, THE FED HAS BEEN OPERATING WITH ONLY FIVE OF ITS SEVEN BOARD MEMBERS WHILE NOMINEES LANGUISH IN THE SENATE CONFIRMATION PROCESS.|
|00:01:51||THERE'S NO REAL QUESTION THAT BOTH OF OUR NOMINEES ARE QUALIFIED AND BIPARTISAN.|
|00:01:57||AREA IS MY STEIN IS A WELL-KNOWN HARVARD ECONOMIST WITH STRONG EXPERTISE IN MONETARY POLICY AND FINANCIAL REGULATION.|
|00:02:05||INBETWEEN TWO STINTS AT HARVARD, MR.|
|00:02:06||STEIN WAS ON THE FINANCE FACT OUGHT AT M.|
|00:02:09||I.T.'S SLOAN SCHOOL OF MANAGEMENT FOR TEN YEARS.|
|00:02:11||HIS RESEARCH HAS COVERED TOPICS AS THE BEHAVIOR OF STOCK PRICES, CORPORATE INVESTMENT AND FINANCING DECISIONS, RISK-MANAGEMENT, CAPITAL ALLOCATION INSIDE FIRMS, BANKING, FINANCIAL REGULATION AND MONETARY POLICY.|
|00:02:26||HE IS CURRENTLY COEDITOR OF THE "QUARTERLY JOURNAL OF ECONOMICS" AND WAS PREVIOUSLY A COEDITOR OF THE "JOURNAL OF ECONOMIC PERSPECTIVES.|
|00:02:34||" FROM FEBRUARY -- JULY OF 2009, HE SERVED AS A SENIOR ADVISOR TO THE TREASURY SECRETARY AND ON THE STAFF OF THE NATIONAL ECONOMIC COUNCIL IN THE OBAMA ADMINISTRATION.|
|00:02:43||JEROME POWELL IS A VISITING SCHOLAR AT THE BIPARTISAN POLICY CENTER HERE IN WASHINGTON, WHERE HE HAS FOCUSED ON FEDERAL AND STATE ISSUES.|
|00:02:52||HE'S A FORMER LAWYER WITH EXPERIENCE IN INVESTMENT BANKING AND PRIVATE EQUITY WHO WILL BRING VALUABLE AND BROAD PRIVATE-SECTOR EXPERTISE TO THE BOARD.|
|00:03:01||FROM 1997-2005 WAS A PARTNER AT THE CARLYLE GROUP.|
|00:03:04||HE FOUNDED AND LED THE INDUSTRIAL GROUP WITHIN THE U.|
|00:03:08||S. BUYOUT FUND SO HE HAS BROAD EXPERIENCE IN THE PRIVATE SECTOR AND WITH MANUFACTURING COMPANIES AND OTHER INDUSTRIES THAT ARE THE HEART OF OUR ECONOMY.|
|00:03:16||HE SERVED ON BOARDS OF SEVERAL CHARITABLE AND EDUCATIONAL INSTITUTIONS.|
|00:03:20||CURRENTLY A MEMBER OF THE BOARD OF DIRECTORS OF D.|
|00:03:22||C. PREP, A CHARTER SCHOOL IN WASHINGTON.|
|00:03:24||THE BEN TIMES CENTER FOR FINANCE AT PRINCETON, AND THE NATURE CONSERVANCY.|
|00:03:30||SO THERE IS NO REQUIREMENT THAT THE PRESIDENT NOMINATE GOVERNORS FROM THE OTHER PARTY BUT WE HAVE IN KEEPING WITH THE WORK OF SENATOR ALEXANDER AND SENATOR JOHANNS AND OTHERS, THIS IS A BIPARTISAN NOMINATION.|
|00:03:44||MR. POWELL IS A REPUBLICAN, AND HE SERVED AS UNDER SECRETARY FOR THE TREASURY FOR FINANCE UNDER PRESIDENT GEORGE H.|
|00:03:52||W. BUSH WITH RESPONSIBILITY FOR POLICY ON FINANCIAL INSTITUTIONS, THE TREASURY, AND DEBT.|
|00:03:57||SO WE HAVE ONE MEMBER WHO SERVED IN THE MOINGS THE OBAMA ADMINISTRATION, ONE NOMINEE WHO SERVED IN THE BUSH ADMINISTRATION.|
|00:04:07||IT'S VERY GOOD WE HAVE COME TO AN AGREEMENT HERE AND WE HOPE IT CAN SET THE TONE FOR AGREEMENTS WELL INTO THE FUTURE.|
|00:04:13||THIS YEAR AND IN 2013 AS WELL.|
|00:04:16||WITH THAT, MR.|
|00:04:17||PRESIDENT, I YIELD THE FLOOR.|
|00:04:20||THE PRESIDING OFFICER: ALL TIME HAS EXPIRED.|
|00:04:22||UNDER THE PREVIOUS ORDER, THE QUESTION IS NOW ON THE STEIN|
Mr. SCHUMER. Mr. President, I rise today with gratitude to thank and honor my good friends and esteemed colleagues Senator Alexander and Senator Johanns. The willingness to vote on two of the President's nominees to serve as members of the Board of Governors of the Federal Reserve that they have expressed today is exactly the sort of bipartisan approach that has historically made the Senate work. I would like to honor their efforts to get us back to that proud tradition and thank them for their efforts to bring these two distinguished men to a vote.
Serving on the Banking Committee together, I know Senator Johanns to always do his due diligence when reviewing any proposed legislation or in this case nominees. I am grateful for it. I am also grateful my good friend Senator Alexander is the ranking member of the Rules Committee. His hard work and insight were invaluable as we worked together to streamline presidential appointments and to pass a bill in the Senate to reduce the number of positions requiring Senate confirmation last year. He has always worked for the betterment of this body. Today is another example.
Yet despite our work last year, we face a backlog of nominations which [Page: S3251] gridlocks other important legislative business. That is not how the process should work.
The Senate was designed to be a thoughtful and deliberative body. But the American public is harmed when we are not able to get qualified people confirmed to positions in a timely manner. Nominees of impeccable qualifications and indisputable support have been frozen out of the confirmation process. Thankfully that will not be the case today.
At a time when our economy is struggling to maintain forward momentum, and the Federal Reserve is faced with difficult decisions about how to help the recovery now without creating problems in the future, it is absolutely critical that we not leave the Fed undermanned. For months now, the Fed has been operating with only 5 of its 7 board members, while nominees languish in the Senate confirmation process. There is no real question that both of our nominees are qualified and bipartisan.
Jeremy Stein is a well-known Harvard economist, with strong expertise in monetary policy and financial regulation. In between two stints at Harvard, Stein was on the finance faculty at M.I.T.'s Sloan School of Management for 10 years. Stein's research has covered such topics as: the behavior of stock prices; corporate investment and financing decisions; risk management; capital allocation inside firms; banking; financial regulation; and monetary policy.
He is currently a coeditor of the Quarterly Journal of Economics, and was previously a coeditor of the Journal of Economic Perspectives. He is a fellow of the American Academy of Arts and Sciences, a research associate at the National Bureau of Economic Research, and a member of the Federal Reserve Bank of New York's Financial Advisory Roundtable. From February to July of 2009, he served in the Obama administration, as a senior advisor to the Treasury Secretary and on the staff of the National Economic Council.
Jerome Powell is a visiting scholar at the Bipartisan Policy Center here in Washington, where he focuses on Federal and State fiscal issues. He is also a former lawyer, with experience in investment banking and private equity who will bring valuable and broad private sector expertise to the Board. From 1997 through 2005, Powell was a partner at The Carlyle Group, where he founded and led the Industrial Group within the U.S. Buyout Fund. So he has broad experience working with manufacturing companies and other industries at the heart of the U.S. economy.
Powell has served on the boards of several charitable and educational institutions. He is currently a member of the board of directors of D.C. Prep, a charter school operator in Washington, DC; the Bendheim Center for Finance at Princeton University; and The Nature Conservancy of Washington, DC and Maryland.
There is no requirement that the President nominate governors from the other party, but Mr. Powell is also a Republican who served as Undersecretary of the Treasury for Finance under President George H.W. Bush, with responsibility for policy on financial institutions, the treasury debt market, and related areas. So this is not a partisan issue or ideological battle.
We have one nominee who served in the Obama administration, one nominee who served in the Bush administration.
It is very good that we have come to an agreement. We hope it can set the tone for agreements well into the future, this year and in 2013 as well.
I yield the floor.