MNI EXCLUSIVE: Key GOP Senator Sees Aug. Panel Vote On Quarles

--Banking Chair Crapo Wants His Committee To Approve Fed Nominee In Coming Weeks

--Former Banking Chief Shelby Says Quarles Is 'Exactly Who We Need At the Fed'

By John Shaw

     WASHINGTON (MNI) - Senate Banking Committee Chairman Mike Crapo told MNI in

an exclusive interview Thursday that he wants his panel to approve the

nomination of Randal Quarles to be a governor on the Federal Reserve Board and

vice chairman of supervision before the Senate breaks for the August recess.

     "I'd like the committee to act before we leave in a few weeks. I think we

can do that," he said.

     "We still have a few weeks when we're supposed to be in session, so that

should work," he added.

     Crapo told MNI several weeks ago in an exclusive interview that he hoped

the full Senate would confirm Quarles this autumn.

     The Senate is expected to begin its summer recess in the middle of August.

The Senate Banking Committee Thursday held a confirmation hearing for Quarles.  

     Republicans on the Banking Committee were supportive of Quarles, but

several Democrats were sharply critical.

     Sen. Elizabeth Warren said during the hearing that Quarles' record as the

founder of Cynosure Group, a private investment firm, was not encouraging.

     "That's not a record that should give Americans as a whole a lot of

confidence in you," she said.

     She was also critical of his record as a senior Treasury official during

the George W. Bush administration.  

     Sen. Richard Shelby, the former chairman of the Senate Banking Committee

and now a senior Republican on the panel, told MNI exclusively Thursday that

Quarles is "a very good candidate. He's exactly what we need at the Fed."

     Shelby praised President Donald Trump for "appointing a very high quality

man to the Federal Reserve and finally naming someone to fill an important

position."

     He said he has been eager for the vice chair position to be filled for

several years.

     "The job was created in law. It should be filled," Shelby said.

     Shelby said he expects Quarles to be confirmed by the Senate, but signaled

that he anticipates Democratic resistance.

     "Will Quarles be confirmed? Yes. Will it be easy? I can't say that," Shelby

said.

     Republicans have a 52 to 48 majority in the Senate and need only 50 votes

to confirm him.   

     By tradition, the Senate Banking Committee holds a confirmation hearing and

then schedules a separate session to vote on the nominee.

     If the Senate Banking Committee approves the Quarles nomination, it will

then be sent to the full Senate for its consideration.

--MNI Washington Bureau; tel: +1 202-371-2121; email: john.shaw@marketnews.com

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