The board of governors of the Federal Reserve system and doctor christopher, the member of the board of governors in the Federal Reserve system. Welcome and congratulations to each of you for your nominations. I see friends and family in the room today and i welcome them as well. Were fortunate to have these two highly qualified nominees appearing today. These positions are critical to ensuring a safe, sound and vibrant Financial System in the healthy growing economy. The Federal Reserve was created by congress as the nations central bank to promote a stable economy and a safer more flexible Financial System. Among the Federal Reserve responsibility is conducting the nation Monetary Policy with the mandated promoting maximum employment, and moderate longterm Interest Rate. In addition to its Monetary Policy that oversees a significant portion of the sector including large, regional and Community Banks as well as certain nonbanks. It aims to foster a safe and efficient payment and settlement system. With this in mind it is important that we nominate and confirm wellqualified candidates with different perspective to the position of governors to ensure robust debate and more effective decisions. Before turning to doctor shelton and doctor waller, i am interning to the record or lumber under letter from a hundred economists supporting the nomination and also an article from the wall street journal supporting doctor shelton titled the war on judy shelton. Doctor shelton most recently served as executive director for the European Bank for reconstruction and development. Was confirmed by voice vote in 2018. Doctor shelton experience working for nonprofits and Academic Institution forged her deep knowledge of democracy, economic theory and Monetary Policy that will broaden and diversify the perspective. Doctor waller has served as a Research Director of the Federal Reserve bank of st. Louis for the last 11 years and aided the president of the st. Louis fed in analyzing the economy in recommending u. S. Monetary actions. His research on monetary theory and the micro foundation of money in Payment Systems will be valuable as we see a rise encrypted currency and Digital Currency in this country and abroad. I am confident that doctor shelton and doctor waller will bring strong leadership to the Federal Reserve system. As governors of the Federal Reserve, doctor shelton and doctor waller will play key roles in carrying out the fed supervisory activity consistent with the law. While also playing an Important Role in striking the balance between tailored regulations and supervision soundness. I appreciate the positive meetings i have had with each of you leading to todays hearing. I look forward to continuing a robust discussion on the following topics, the important of rightsizing regulation and tailoring the framework to support a vibrant growing economy while also ensuring a safe and sound initial system. Accepting marketbased fixes to maintain stability and money market, the development of centralbank Digital Currencies and other Technological Innovations in the financial space which we also discussed with chairman powell yesterday. In continuing to encourage the Federal Reserve to submit all rules to congress under the Congressional Review Act as well as to submit all significant guidance for purposes of the Congressional Review Act. I look forward to working with doctor shelton and doctor waller on these and other areas where the fed and congress can act to further reduce unnecessary burden and Economic Growth. Congratulations again on your nomination and thank you and your families for your willingness to serve. Senator brown. Thank you, mr. Chairman, welcome and thank you for being leaders. This shelton, mr. Waller would like to extend my greetings to your family and friends who have joined you. Welcome. Independence matters, economies with independent Central Banks have less price well until later, fewer bank mechanics and more stable communities. One of the nominees today before us does not believe in independent fed, it has spent her entire career advocating for policies that would make our economy more volatile yet families and businesses more to worry about in an uncertain world. The point of the independent Federal Reserve is to be a steady guiding hand to worry about the big picture of the out have to. But for ms. Shelton, these are not hazards to avoid, they are the goal, to understand the economic issues, the servitors and liberals and most people fall somewhere in the middle of the continuum, ms. Shelton is not a conservative, shes outside of the mainstream, she is off the ideological spectrum. First three decades shes been a prominent advocate for returning to the Gold Standard. In making the case for ms. Sheltons nomination her friend james grant wrote in the wall street journal with the nomination of judy shelton to the fed a discussion is still gold, gold is money or legacy, she can tends in the Gold Standard of the superior form of monetary organization. People can agree to disagree on certain issues but we dont get our own facts and the facts are clear, if we as a nation followed ms. Sheltons advice and not advanced beyond the Gold Standard nearly half a century ago, our nation would have been boom to bust without the monetary rules necessary to pull us out of the recession. Depressions wouldve been deeper and longer, millions of working families wouldve suffered a even more for no reason and certainly inextricable reasons to them. That is not the end of the story, ms. Shelton clearly voiced her opposition to fdics deposit insurance, the insurance that everyone takes for granted that has been part of our culture and economy for so many years, the insurance most important that protects the saving hardworking of americans. In other words she thinks if a bank fails, we all remember to vividly 10 12 years ago when they did indeed fail and all the families whose savings and paychecks who were stored in the bank should lose all their money. Passing federal deposit insurance was one of president roosevelt first asked during the Great Depression under depression for a reason. That guaranteed your money is safe in the bank for the bedrock of modern economy. This is not an intellectual exercise about moral hazard, this is the real world. I dare to explain to the working families in idaho or pennsylvania or alabama or louisiana or minnesota or new jersey or rhode island, i dare anyone to explain to working families that experience Bank Closures in the Great Recession or the savingsandloan crisis the fdics is a hugely distorting factor. But ms. Shelton does not stop there, the money in your wallet is backed by the credit of the United States government yet michelle advocated with doing away with the dollar and replacing it with a common currency of north america. Im serious to make math more effective, shes the dolly to be replaced with a common currency for north america called the marrow. Another time she has called for the creation of a generic global currency backed by gold. That globalist ideology does not belong anywhere near our fiscal and Monetary Policy. The american dollar is the World Reserve currency, it should stay that way, we wanted that way, and we are proud of it. The bottom line, michelle has too many alarming ideas into many important issues to be confirmed for this job. We know she will say exactly what the president wants her to say, further threatening the independence of the fed, she was an interestrate hawk until President Trump wanted lower rates, she imposed tariffs on china before she was for them. And based upon the Committee Members heard in meetings with her it appears ms. Shelton has changed all her positions on everything from the Gold Standard to steadfast opposition to fdic insurance. That is not the steady hand required at the fed. 11 years in the district covering more than the fed needs to be independent and careful, not reactive to every tweets coming out of the white house. Ms. Shelton is a voting against that independence in the nations reputation as a financial bulwark for the whole world. Our other nominee to the board mr. Wallers, an economist whose work and analysis has helped direct undertaking by the fed. I look forward to read more about how he will hold austria accountable if he is confirmed. Last, i want to know there shouldve been a third chair at this table. We are not exactly sure why but ms. Jesse lewis supposed to be considered by the committee today, her nomination was withdrawn 36 hours ago although the treasury secretary told me publicly yesterday he knew for two days although i dont think the chair of this committee and i did not know as winky member. The position she was nominated for is responsible for overseeing the countrys work for terrorist and drug cartel in economic sanctions. Now that her nomination has been withdrawn, that position will remain empty. Once again protecting the president of the United States with the National Security at risk. Thank you, mr. Chairman. We will now administer the oath. If you will preserve rise and raise your right hand. Do you will swear or affirm that the testimony youre about to give is a truth, the whole truth and nothing but the truth so help me god and you agree to appear and testify before any constituted committee . Thank you you may be seated. Your written statement will be made a part of the record in their entirety. Before you begin your statements, i invite you to introduce your family in attendance. Thank you. You may start mr. Unterman shelton. Ranking member brown and members of the committee, thank you for the opportunity to appear before you today. I am honored that the president has nominated me to serve as a member of the board of governors of the Federal Reserve system. Im grateful that this committee for considering me for this position. Im also deeply grateful for the support of my husband of 42 years he was here today along with our son. And i want to give special thanks to my mother jenness jens potter and the healthy contingent of Family Member sitting behind me, jim, christie, rick and susie, they all flew out from california to be here with me. It means a lot. For nearly four decades going back to my years as a doctoral student at the university of utah, i have focused on the impact of Monetary Policy on Economic Performance, my studies have current Financial Economic conditions as well as historical tracing back to our constitution. One thing is very clear, the power to regulate the value of u. S. Money is granted to congress, congress created the Federal Reserve as an independent agency and through the Federal Reserve act of 1977, charged it with the mandate to promote maximum employment stable prices and moderate longterm Interest Rates. Our central bank has been in considerable power to carry out its responsibility. Along with the political independence and operational autonomy granted to the Federal Reserve comes an obligation to be wholly accountable to congress and the public. If confirmed my priority would be to support Monetary Policy that facilitates productive Economic Growth while also ensuring the soundness instability of the u. S. Financial system. In exercising the Federal Reserve regulatory oversight, i will support policies that are effective, efficient and appropriately tailored to Financial Institutions allowing them to better serve their customers and communities in ways consistent with maintaining as a Financial System. I am well prepared to conscientiously fulfill the duties of the position for which i have been nominated based on my background and experience. The First College course i ever taught was money and banking. As a Research Scholar at the Hoover Institution at stanford university, i analyze the relationship between Monetary Policy and Economic Sustainability in the context of geopolitical competition. My first book accurately predicted the collapse of the soviet union. My second book examine the impact of Currency Movement on trade. I have testified numerous times as an Expert Witness for congressional committees in the house and senate. As u. S. Executive director of the European Bank for reconstruction and development, i demonstrated strong leadership to achieve high priority objectives in accordance with strategic interests. Combining academic perspective with realworld insight. I hope to contribute intellectual diversity as a governor and work to promote found monesound from untrained d sound finances. In closing i wish to emphasize my commitment the Constitutional Authority to congress to regulate the value of u. S. Money. By fulfilling the statutory mandate congress has assigned to the Federal Reserve we ensure that americas money remained the world most respected currency and is most trusted standard of value. Thank you again for the privilege of appearing before you today and i look forward to your questions. Thank you. Doctor waller. Chairman crapo, Ranking Member brown and members of the committee, thank you for the opportunity to appear before you today, i am honored to be of nominated by the president for this prestigious position. In grateful to the committee for its consideration of my nomination. I would be humbled to be able to surmise country in this capacity. I am also think before the support of my Family Members who are here with me today, my loving wife lori and my three children, sarah, maggie and sam and my mother and who has been my hero throughout my life. For the last 11 years i have served as a director of research at the Federal Reserve bank of st. Louis. During that time i have attended over 60 federal open Market Committee meetings and served as the main policy advisor to my being president. But the results of this experience, i fully understand and support the dual mandate of the Federal Reserve. I also understand and appreciate the Federal Reserve role in pursuing policy to ensure a safe and stable Financial System. If i am confirmed, i will continue to advocate for policies that achiever dual mandate ima maintain financial stability. I believe my background makes me uniquely qualified to fulfill the responsible these from a Federal Reserve governor. My decadelong experience at the Senior Reserve bank official, i was deeply involved in policy issues confronting the Federal Reserve. But in my role i also stand a substantial amount of time talking to members of the community about how Monetary Policy affected their lives and businesses. That public input affected what i thought about policy and conflicts. I also learned how valuable it was to communicate clearly to the public what our policies were and why we were pursuing them. In addition to my experiences Federal Reserve official, i was an academic for over 25 years and did a substantial researcher monetary theory, Monetary Policy, and central big design. I have written extensively on the importance of centralbank independence for the conduct of Monetary Policy, my Research Also focused on the centralbank can be made accountable to the electorate without giving up the independence. In particular i study the importance of the nomination and confirmation process in achieving centralbank accountability. Th