Sen. Rand Paul (R-Ky.) said Thursday he will vote against Marvin Goodfriend's bid to become a member of the Federal Reserve board, a move that could sink the nomination on the Senate floor.
Goodfriend, nominated by President Donald Trump, was approved by the Senate Banking Committee in a 13-12 party-line vote, indicating that he is unlikely to receive any Democratic support. With Sen. John McCain (R-Ariz.) out for health reasons, any Republican “no” vote could defeat his nomination.
Paul is an outspoken Fed critic, and his father while in Congress once introduced a bill specifically condemning the economist’s idea for a “carry tax.”
Goodfriend suggested the idea, which would decrease the value of dollar bills depending on how long they’d been outside of a bank, while he worked at the Richmond Fed. During his nomination hearing, he said he would not advocate for the tax if confirmed.
“I don’t know a lot about him, although I think he was the one that wanted to insert [a] metal strip in the currency or something?” Paul told reporters outside the Senate chambers, when asked about Goodfriend. “Doesn’t sound very exciting to me, so I’ll be a no.”
The White House voiced its continued support for Goodfriend after news broke of Paul's opposition.
“The President stands behind his nomination of Marvin Goodfriend, who is incredibly qualified for the Federal Reserve board of governors," Deputy White House Press Secretary Lindsay Walters said in a statement to POLITICO. "We hope the Senate confirms Mr. Goodfriend swiftly given the importance of the Federal Reserve to the American economy.”
Democrats have criticized Goodfriend for making inflation a higher priority than unemployment and for his support of House Financial Services Chairman Jeb Hensarling's Financial CHOICE Act.
A vote has not yet been scheduled for Goodfriend.
