Sarah Bloom Raskin, a former Federal Reserve Board governor, has peacefully withdrawn her name from presidential nomination as the next Federal Reserve vice chair for supervision. She took this action to allow other nominations to proceed amid intensified objections from Republican lawmakers.
Raskin received her appointed letter in February from President Joe Biden to replace Randal Quarles, who finished his four-year term in October 2021. According to Seung Min Kim, a proficient journalist at Washington Post, Raskin sent a letter to U.S President Joe Biden, rejecting her nomination as the next vice chair for supervision, citing relentless attacks from people with special interests within the government.
In her withdrawal letter, Raskin frankly referred to Republican lawmakers, who she boldly alleged, have held hostage her nomination since February. While expressing her disgruntlement to the Republican objection, Raskin explained:
“Their point of contention was my frank public discussion of climate change and the economic costs associated with it. It was — and is — my considered view that the perils of climate change must be added to the list of serious risks that the Federal Reserve considers as it works to ensure the stability and resiliency of our economy and financial system. The identification and prioritization of economic threats are not only within the mandate of the Federal Reserve but essential to the well-being of the country.”
Sarah Bloom Raskin’s withdrawal letter. Of note: “Had the boycotting senators simply challenged my belief in the need to integrate climate-based risks and costs into the financial regulatory apparatus, I would have welcomed the opportunity for this important discussion.” pic.twitter.com/IYphgLaISn
— Seung Min Kim (@seungminkim) March 15, 2022
Although the Democratic Party representatives currently hold a slight majority in the U.S. Senate, with Her Excellency Vice President Kamala Harris acting as a tie-breaking vote, West Virginia Democrat Senator Joe Manchin defenselessly failed to push Raskin’s nomination.
The objection in the house suggests that it is almost impossible for the political party to approve Biden’s pick without Republican support. Moreover, the Senate minority leader Mitch McConnell has sarcastically urged the U.S. president to submit a fresh candidate for the Fed vice chair for supervision.
Policymakers on the Senate Banking Committee were scheduled to vote on several presidential nominations, including the Fed vice chair for supervision, reaffirmation of prospective Fed chair Jerome Powell, vice-chair Lael Brainard and board members Lisa Cook and Philip Jefferson in February this year.
Unfortunately, Republican representatives boycotted the meeting, alleging that Raskin lobbied the President of Kansas City Fed in 2017 to access payments systems on behalf of Reserve Trust. At the time, Raskin was just a board member of the fintech firm.
In her withdrawal letter, Raskin has strongly refuted these claims, describing them as baseless in law or fact:
“Rather than a productive and informed discussion about climate and financial risk, the country was treated to diversionary attacks on my ethics and character. We are witnessing a drive to make financial risk a tawdry political issue.”
Earlier this week, Pat Toomey, the ranking member of the Senate Banking Committee, said Republican representatives are willing to approve the remaining Powell, Brainard, Cook, and Jefferson appointments.
It is worth noting that these nomination delays have made some nominees unable to assume the duties necessary for a dully-staffed Federal Reserve. In this case, Jerome Powell is a perfect example, having been pronounced pro tempore since February 4.
