Fed nominee Goodfriend grilled by Democrats

WASHINGTON – Federal Reserve board nominee Marvin Goodfriend says he supports the Fed’s political independence and its dual goals of achieving stable prices and low unemployment. But those assurances did not seem to satisfy Democrats who say Goodfriend’s past policy positions are at odds with his current views.

Goodfriend, an economics professor at Carnegie Mellon University in Pittsburgh, faced tough questioning from Democrats on the Senate Banking Committee during his confirmation hearing on Tuesday. He won the backing of Republicans who spoke favourably of his conservative views.

Under questioning, Goodfriend says he regretted calling the Fed’s goal of low unemployment “incoherent” and says he supported the dual mandate Congress has given the Fed on inflation and unemployment. President Donald Trump nominated Goodfriend for a vacancy on the seven-member Fed board.