Chicken Games
It’s no longer news that Senate Banking’s Republicans last week boycotted confirmation votes for the Administration’s full slate of Federal Reserve nominees along with that for FHFA Acting Director Thompson. Although the tactics are striking, Republican objections aren’t — we forecast these well before the voting (see Client Report FEDERALRESERVE66) and see nothing thereafter to change our prediction that — while certainly possible — it would prove difficult for the White House to advance Ms. Raskin’s appointment as Vice Chair for Supervision. Our updates last week also predicted that each side would dig in its heels not just on Ms. Raskin, but also on whether Democrats would split the slate so all but her appointment could advance. What’s next?