White House formally withdraws Diamond Fed nomination

Reuters News
Posted: Jun 09, 2011 5:59 PM
White House formally withdraws Diamond Fed nomination

WASHINGTON (Reuters) - The White House on Thursday formally withdrew the nomination of Peter Diamond to be a governor of the Federal Reserve Board in Washington.

The Nobel prize-winning economist said on Sunday he planned to inform the White House that he would remove himself from the nomination process, bogged down for months in the Senate due to opposition from senior Republican lawmakers.

The post, which requires Senate confirmation, is one of two current open vacancies on the seven-member Fed board.

The top Republican on the Senate Banking Committee, Richard Shelby, had criticized Diamond for lacking monetary policy experience. Observers say Diamond also fell victim to payback from Republicans angered by Democratic obstruction of a Fed nominee put forward by Republican President George W Bush.

(Reporting by Alister Bull; Editing by Sandra Maler)