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Joe Biden Nominates Sarah Bloom Raskin As Top Fed Banker

Joe Biden asked Sarah Bloom Raskin, the former Deputy Secretary of the Treasury, to lead financial oversight for the Federal Reserve as the White House seeks tougher regulations on big banks and more attention to financial risks associated with climate change.

The US president on Thursday night sent the nomination of Raskin to the Fed’s vice chair of oversight to the Senate, where she will have to be confirmed for the position, according to a person familiar with the matter.

Biden also nominated Lisa Cook, professor of economics and international relations at Michigan State University, and Philip Jefferson, professor of economics at Davidson University, to fill the remaining two positions on the Fed’s board of governors.

Cook will be the first African-American woman in US history to serve on the central bank’s board, while Jefferson will be the fourth African-American man to serve as governor at the Fed, fulfilling his pledge Biden’s end. offer more variety for the central bank.

The options end months of deliberation in the Biden administration over the top Fed positions, including the nomination decision. Jay Powell for a second term as chairman and Lael Brainard, the incumbent Fed governor, as vice chairman.

Powell and Brainard testified at their confirmation hearings before the Senate banking committee this week, vowing to prioritize anti-inflation monetary policy as the rate of price appreciation spiked to the highest level in about four decades.

Raskin, a law professor at Duke University who served as deputy secretary of the treasury during Barack Obama’s presidency, has long been considered a leading candidate for location. Previously, she served as governor of the Fed and enjoyed widespread support among Democrats.

Raskin, 60, was originally nominated to a role at the Fed in 2010 alongside Janet Yellen, who later became Fed chair and now serves as Treasury Secretary. Raskin played an integral role at the central bank in implementing the sweeping Dodd-Frank act that sought to amend the regulation of banks in the wake of the global financial crisis.

At the Fed, she also focused on addressing income inequality and strengthening consumer protection, a work she continues at the Treasury Department, in addition to leading issues related to network security.

More recently, Raskin, who is married to Jamie Raskin, a Democrat from Maryland, became a speak out in favor of bolder action from central banks and other regulators in addressing the financial threats posed by climate change.

Grandma Written in September.

Republican lawmakers have taken issue with the Fed’s involvement in topics like climate change, press Brainard during a confirmation hearing on Thursday about her support for proactively considering environmental risks.

Pat Toomey, a Republican senator from Pennsylvania, expressed reservations about Raskin’s stance on lending restrictions for fossil fuel-intensive companies and the Fed’s support for the industry in times of crisis.

“I am really concerned that she will abuse the Fed’s narrow statutory mandates on monetary policy and banking supervision to require the central bank to actively participate in capital allocation,” said Toomey. said in a statement. “Such actions not only threaten both the independence and effectiveness of the Fed, but can also undermine economic growth.”

Powell has previously said that climate change “is really an issue that is left to a lot of other government agencies, not the Fed,” and that the central bank has not and does not “seek to be the climate policymakers” – the comments were criticized by progressives.

But he also said he would welcome regulatory changes to the banking sector from his position as the central bank’s next vice president of oversight.

When asked in November by Elizabeth Warren, a Democratic senator from Massachusetts, whether he would “postpone” the vice chairman seat to oversee, Powell said: “I look forward to having a perfectly normal, good, constructive working relationship.” build” with anyone who has been confirmed.

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