U.S. Treasury nominee approved after hold lifted

WASHINGTON Oct 21 (Reuters) - The U.S. Senate on Friday confirmed Janice Eberly as the U.S. Treasury's assistant secretary for economic policy after a senator partially lifted a hold he had placed on nominees for Treasury positions.

Eberly, who most recently taught at the Kellogg School of Management at Northwestern University, will head the Treasury Department's Office of Economic Policy, which is charged with analyzing economic developments in the United States and abroad and assisting in setting appropriate economic policies.

Democratic Sen. Mark Pryor of Arkansas released his hold on two of seven Treasury nominees after Treasury agreed to suspend a bid to collect money from an Arkansas couple who had received disaster assistance money that the Federal Emergency management Agency now wants back.

Pryor said on Wednesday he was blocking votes on nominees because FEMA had asked Treasury to collect money from a Mountain View, Ark. couple who had received $27,000 in assistance after a 2008 flood. FEMA said the money was paid in error and wanted them to repay $37,000 with interest and penalties.

In a press release, Pryor said Treasury agreed to stop collection efforts until a resolution was reached and said Treasury Secretary Timothy Geithner had personally committed to finding a swift and satisfactory solution.

"Because of these actions, Pryor agreed to lift holds on two of the seven pending Treasury nominees," the press release said. "He will continue to hold the remaining five until the matter is concluded."