Mon. Jan 24th, 2022


Joe Biden has arrested Sarah Bloom Raskin, the former deputy treasury secretary, for leading financial oversight of the Federal Reserve, as the White House seeks stricter regulations on major banks and pays greater attention to climate change-related financial risks.

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

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

Cook would be the first African-American woman in U.S. history to serve on the central bank’s board, while Jefferson would be the fourth African-American man to serve as governor of the Fed, fulfilling Biden’s promise to come. bring greater diversity to the central bank.

The election concludes months of Biden administration deliberations on the Fed’s top positions, including the decision to nominate Jay Powell for a second term as a chair and Lael Brainard, a sitting Fed governor, to be vice president.

Powell and Brainard testified before the Senate Banking Committee during their confirmation hearings this week, promising to fight against inflation in monetary policy, as price growth has risen to its highest level in about four decades.

Raskin, a law professor at Duke University who served as deputy secretary of state during Barack Obama’s presidency, has long been considered a leading competitor for the position. She was previously a governor at the Fed and enjoys broad support among Democrats.

Raskin, 60, was initially nominated for a role at the Fed in 2010 along with Janet Yellen, who later became Fed chair and currently serves as Treasury Secretary. Raskin played an integral role at the central bank in implementing the comprehensive Dodd-Frank legislation that sought to review bank regulation following the global financial crisis.

At the Fed, she also focused on addressing income inequality and strengthening consumer protection, work she continued at the Treasury Department, in addition to leading cybersecurity issues.

More recently, Raskin, who is married to Jamie Raskin, a Democratic member of the House of Representatives of Maryland, a vocal advocate for brave action of the central bank and other regulators in addressing financial threats stemming from climate change.

“In light of the changing climate’s unpredictable – but clearly increasing – impact on the economy, U.S. regulators will have to leave their comfort zone and act early before the problem worsens and becomes even more expensive to address,” she said. wrote in September.

Powell has previously said that climate change “is really an issue that is being assigned to many other government agencies, not so much the Fed”, and that the central bank was not and did not “seek to be climate policy makers” – remarks that have been criticized by progressive.

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

Asked in November by Elizabeth Warren, the Massachusetts Democratic senator, whether he would “postpone” to the vice president for oversight, Powell said, “I would expect to have a completely normal, good constructive working relationship” with whom even if confirmed. .

Swamp notes

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