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Washington

Fed nominee Marvin Goodfriend cleared for Senate vote

Marvin Goodfriend

Marvin Goodfriend's nomination to serve on the Federal Reserve's board of governors was narrowly approved by the Senate Banking Committee Thursday, by a vote of 13-12 along party lines.

The nomination now moves to the full Senate, which has not scheduled a vote.

At his Jan. 23 confirmation hearing before the panel, Mr. Goodfriend was questioned by several senators for his positions on inflation and monetary policy. Sen. Jon Tester, D-Mont., criticized Mr. Goodfriend for saying that he does not believe the 30-year fixed-rate mortgage needs a guarantee from the U.S. government. "Dr. Goodfriend's extreme stance on the 30-year fixed-rate mortgage is dangerous for our economy, could slow down the housing market and keep millions of families from purchasing their first home. His testimony today tells me he is unqualified for a leadership role at the Fed," Mr. Tester said in a statement after the hearing.

Mr. Goodfriend, who was nominated by President Donald Trump on Nov. 30 to serve through January 2030, is the Friends of Allan Meltzer Professor of Economics at Carnegie Mellon University's Tepper School of Business. He also serves on the Fed's Shadow Open Market Committee.

His past experience with the Federal Reserve includes director of research at the Federal Reserve Bank of Richmond from 1993 until 2005, and visiting economist at the Federal Reserve Board. He was a senior staff economist for President Ronald Reagan's Council of Economic Advisers, and has advised several European central banks and the Bank of Japan.

If Mr. Goodfriend is confirmed, that still leaves three vacant seats on the seven-member board.