Senator Pat Toomey
Cameron Costa | CNBC
Sen. Patrick Toomey said he will support the nomination of Judy Shelton to the Federal Reserve, removing a key obstacle to her confirmation.
The Pennsylvania Republican said Wednesday he received assurance that Shelton does not favor devaluing the dollar to combat lower currencies in other countries.
During a contentious confirmation hearing Feb. 13 before the Senate Banking Committee, Toomey grilled Shelton, whom President Donald Trump nominated, on her views regarding competitive devaluation. He did not commit to voting for her as a Fed governor. Had he chose not to support Shelton, her nomination could have died in committee.
“Since the hearing, I have corresponded and spoken further with Dr. Judy Shelton about her views on monetary policy. She clarified to me that she will oppose using monetary policy for the purpose of devaluing the dollar,” Toomey said in a statement.
In a letter to Toomey after the hearing, Shelton said she “would not advocate for the devaluation of U.S. currency.” She added that it is not in the direct purview of the Fed to devalue the dollar.
Shelton faced a variety of other sharp questions at the hearing. Much of the questioning centered on her previous writings on the gold standard, whether the Fed should operate independent of political influence, and whether bank deposits should be insured.
If the nomination makes it out of committee, she faces likely confirmation in the Republican-controlled Senate.