Fed Nominee: ‘Nobel Prize Isn’t Enough’

In an annoyed New York Times op-ed today, MIT professor and Nobel Prize–winning economist Peter Diamond withdrew his nomination to the Federal Reserve. Obama nominated Diamond in April 2010, and several times since, but Republicans repeatedly blocked votes on his confirmation. Richard Shelby of Alabama led the charge against Diamond, arguing that his experience with labor markets didn’t qualify him to conduct monetary policy. Diamond points out that you have to understand the nature of unemployment to know how monetary policy can change it. Shelby welcomed Diamond’s withdrawal and urged the White House to pick someone "capable of garnering bipartisan support in the Senate."