Sarah Bloom Raskin withdraws Fed nomination

WASHINGTON — Lacking a confirmation path in the equally divided Senate, Sarah Bloom Raskin stepped down on Tuesday as President Joe Biden’s nominee to serve in a top regulatory position at the Federal Reserve.

Raskin’s removal as Biden’s nominee for Federal Reserve Board vice president for oversight comes a day after Sen. Joe Manchin, DW.Va., announced he opposed his nomination, thus ending his chances. All Senate Republicans stood united against Raskin’s confirmation, meaning the White House could not afford to lose a single Senate Democrat.

“Despite her preparation – and despite being confirmed by the Senate with broad bipartisan support twice in the past – Sarah has been the subject of baseless attacks from industry and advocacy groups. ‘conservative interests,’ Biden said in a statement that did not mention Manchin’s resistance.

He accused Senate Republicans of being “more focused on amplifying these false claims and protecting special interests than on taking meaningful action to fight against inflation and reducing costs to the American people.”

Manchin Opposition:Biden Fed nomination of Sarah Bloom Raskin in jeopardy after Manchin reveals opposition

Raskin, nominated by Biden in January, has come under fire from Republicans and Manchin for his past statements criticizing the Fed’s support for fossil fuel companies regardless of the costs of climate change.

In one 2020 New York Times Op-edshe wrote that climate change threatens financial stability and that the Fed should not “support and enrich” the “dying” fossil fuel industry. She argued that the Fed is “ignoring clear warning signs about the economic repercussions of the looming climate crisis” by taking action that will increase greenhouse gas emissions.

Manchin, who hails from the country’s second-largest coal-producing state, said Raskin’s past statements “have not satisfactorily addressed my concerns about the critical importance of funding a comprehensive energy policy to meet the critical energy needs of our country”.

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Raskin’s nomination was stalled at the Senate Banking Committee after Republicans failed to show up for the committee’s vote in February. The boycott prevented Democrats from getting the quorum needed to push Raskin and the nominations of four other Fed candidates, including Chairman Jay Powellto the entire Senate.

In a letter to Biden announcing her withdrawal, Raskin said she is concerned that “many inside and outside the Senate will want to acknowledge the economic complications of climate change and the toll it has exacted and will continue to exact.” ‘to impose on the Americans’.

Raskin, a former assistant secretary of the Treasury and a member of the Federal Reserve Board from 2010 to 2014, said this was “not a new or radical position.” She said she “would have welcomed the opportunity for this important discussion” if the boycotting senators had not prevented her nomination from moving forward.

“There is hard and urgent work for the Federal Reserve to do,” she said, adding that there would be no excuse for a continued boycott if it ends its confirmation bid. “With a heavy heart, I therefore hereby withdraw my candidacy.”

Even after Manchin revealed his opposition, the White House remained defiant about moving forward to seek bipartisan support for Raskin’s confirmation, praising his credentials and pointing to his previous Senate confirmations for the posts. of the Federal Reserve.

Raskin is married to Rep. Jamie Raskin, D-Md. The seven-member Federal Reserve Board of Governors oversees the central bank of the United States and defines the monetary policy of the nation.

Biden’s other nominees for the Federal Reserve Board are Lael Brainard, Philip Jefferson and Lisa Cook. The president urged the Senate Banking Committee to “move quickly” to move their nominations forward.

Contact Joey Garrison on Twitter @joeygarrison.

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