The President Versus the Senate: Appointments in the American System of Separated Powers and the Federal Reserve

For politicians, appointments are an instrument of policy influence.By installing their representatives in an institution, politicianscan count on policy influence for the duration of their appointees'terms. Given the stakes, the occasional controversy regardingnominees is understandable. On the whole, however, nominationsare not controversial; in fact, Senate confirmation votes areoften unanimous. Nevertheless, the Senate can have substantialinfluence in the appointment process. Using a formal model,this article examines how the president and Senate strategicallybargain with one another within the confines of the FederalReserve appointment process to influence monetary policy. Witha new way to estimate monetary policy preferences, this articleshows empirically that policy influence occurs via appointments.