[Congressional Record (Bound Edition), Volume 152 (2006), Part 9]
[Senate]
[Pages 11683-11684]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           EXECUTIVE SESSION

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NOMINATION OF DONALD KOHN TO BE VICE CHAIRMAN OF THE BOARD OF GOVERNORS 
                     OF THE FEDERAL RESERVE SYSTEM

  Mr. WARNER. Mr. President, I ask unanimous consent that the Senate 
proceed to executive session for the consideration of Calendar No. 711, 
Donald Kohn; provided further that Senator Bunning be recognized to 
speak for up to 15 minutes; following the use or yielding back of time, 
the Senate proceed to a vote on the confirmation of the nomination, 
with no further intervening action or debate.
  Finally, I ask unanimous consent following the vote, the President be 
immediately notified of the Senate's action and the Senate resume 
legislative session.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  Mr. WARNER. Mr. President, I simply would say, it says ``Senate 
resume legislative session.'' It should be: The Senate will resume the 
session of morning business. We wouldn't return to legislation right 
away.

[[Page 11684]]

  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. WARNER. Mr. President, I yield the floor.
  The PRESIDING OFFICER. Under the previous order, the Senate will 
proceed to executive session for consideration of Executive Calendar 
No. 711, which the clerk will report.
  The assistant legislative clerk read the nomination of Donald L. 
Kohn, of Virginia, to be Vice Chairman of the Board of Governors of the 
Federal Reserve System.
  The PRESIDING OFFICER. Under the previous order, the Senator from 
Kentucky is recognized for 15 minutes.
  Mr. BUNNING. Thank you, Mr. President. I will not require 15 minutes, 
but I do have some things to say about the nominee. I just want to 
speak for a few minutes to explain why I am going to vote no on the 
nomination of Donald Kohn to be Vice Chairman of the Board of Governors 
of the Federal Reserve.
  I am going to vote against Dr. Kohn because I do not think he has 
been an independent voice at the Fed. Since he joined the Fed in 2002 
as a member, he has agreed with all of the interest rate decisions that 
Chairman Bernanke and former Chairman Greenspan advanced. And because 
of recent statements, some as recently as Friday, I am convinced he is 
not going to speak up against yet another decision to hike interest 
rates when the Fed open market committee meets at the end of this 
month.
  Interest rate and inflation fears caused by statements from the Fed 
members have put our stock markets into free fall. Ever since the last 
Fed hike, stock values have been plummeting. A lot of value has been 
destroyed. Even counting a few good days last week, most of the major 
indexes are, at best, flat for 2006, despite a great runup in the first 
4 months of the year. Individual investors and pension funds have lost 
billions of dollars, investors' confidence is shaken, and for what? 
Inflation data is at worst mixed. I certainly do not believe it is out 
of control. Oil and commodity prices have fallen significantly lately. 
Consumer spending is still strong.
  Former Fed Chairman Greenspan said recently that the economy has been 
able to handle the high gasoline prices. And even Chairman Bernanke 
admitted last week that the signs of inflation have weakened.
  But the Fed keeps raising interest rates, and its members keep 
talking like another rate increase is coming, even after the June 
meeting. Inflation indicators talked about by Fed members look at what 
has been, not what is coming. And interest rate increases take time to 
impact the economy. But the Fed has not taken a break in raising rates 
for over 2 years--2 years. The Fed has a bad record of overshooting, 
and I am afraid they will overshoot this time if they have not already 
done so.
  We all know that interest rate hikes will slow the economy. I just 
hope that it won't kill it. We need the Fed to stop the madness. I am 
not convinced that Dr. Kohn will be a voice to stop the madness sooner 
rather than later. Because I am not convinced Dr. Kohn will be the 
right voice at the Fed or an independent voice as Vice Chairman, I will 
vote no.
  So, Mr. President, I ask unanimous consent that when the vote occurs 
on Dr. Kohn's nomination, the Record reflect that I voted no.
  I yield the floor.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Under the previous order, the vote now occurs on the nomination. The 
question is, Will the Senate advise and consent to the nomination of 
Donald L. Kohn, of Virginia, to be Vice Chairman of the Board of 
Governors of the Federal Reserve System?
  The nomination was confirmed.
  Mr. WARNER. Mr. President, I move to reconsider the vote and to lay 
that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. The President will be immediately notified of 
the Senate's action.

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