Will Diamond's Nobel prize help him win a Fed position?
Peter Diamond, an economist at the Massachusetts Institute of Technology, may have won the 2010 Nobel Prize in Economic Sciences, but whether this will be enough to get him a job on the Federal Reserve remains a question.
US President Barack Obama chose Diamond for a post on the Federal Reserve Board in April, subject to confirmation by the Senate. However, the nomination was later returned to the White House because of objections from at least one unidentified senator.
"While the Nobel Prize for economics is a significant recognition, the Royal Swedish Academy of Sciences does not determine who is qualified to serve on the Board of Governors of the Federal Reserve System," Sen. Richard Shelby of Alabama said.
The US senator has been blocking Diamond's nomination to the Fed for months, but Diamond after receiving his prize on Monday said he has no plans to withdraw his name from consideration to serve at the central bank.
Obama, who resubmitted Diamond's name on Sept. 13, said he hopes the Senate will confirm Diamond. The president said he chose Diamond for the Fed position to "help bring his extraordinary expertise to our economic recovery."
Sen. Christopher Dodd would hold a hearing on the matter when lawmakers return after November's mid-term elections. The Senate Banking Committee, which Dodd chairs, need to vote a second time on Diamond's nomination before he could be confirmed by the Senate.
Diamond will share the $1.5 million prize with Dale Mortensen and Christopher Pissarides for their work on the efficiency of recruitment and wage formation as well as labor-market regulation.