A Fed Candidate Hits A Wall

The Administration's top candidate for a seat on the Federal Reserve is facing new scrutiny that could derail his nomination. George Perry's wife, Dina Needleman Perry, is a portfolio manager for American Funds Group, a mutual fund company. White House lawyers say the arrangement doesn't violate conflict-of-interest rules. But Clinton aides admit there may be an "appearance problem" with a Fed governor whose spouse's work is so affected by interest-rate policy. Needleman Perry wouldn't comment. But insiders say Perry's nomination is now in "a holding pattern."

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