She had been confirmed by the Senate by voice vote - a parliamentary procedure indicating she saw no serious opposition from Republicans - for the Federal Reserve in 2010 and Treasury in 2014, less than a decade ago. Still, the withdrawal is a clear setback for the Biden administration, especially given Raskin’s experience and prior success in winning Senate approval. I'm actually surprised that so many Democrats were willing to accept it.”īrown’s statement again pushed back on the idea that Raskin was a climate radical, saying that “too many of my colleagues” had fallen for “talking points written by the oil and gas industry.”Īfter Manchin came out against Raskin on Monday, many analysts and observers anticipated Raskin would either withdraw by choice or at the request of the White House. And it's absolutely clear that the Republicans would never accept that. “That's beyond the line that Powell and the rest of the committee has ever gone. “It wasn't just making sure that they were assessing risk appropriately she thought that the Fed should use its lending conditions to shrink the size of the fossil fuel industry,” Meyer, co-founder of Monetary Policy Analytics, said. Laurence Meyer, a Democrat who served from 1996 to 2002, said such a stance “crossed a line,” going beyond the central bank’s supervisory mandate. Yet some felt her prior advocacy against energy companies being allowed access to the Fed’s emergency lending facilities was a bridge too far. Any vice chair for supervision who ignored these realities - which are manifesting every day across this country - would be guilty of gross dereliction of duty.” “Chairman Powell has recognized climate change as a significant risk that needs to be incorporated into the supervisory process. “Central banks around the world have already begun acting on these issues,” she wrote. Raskin argued in her letter that considering climate change in financial models is already mainstream, with insurance companies, commercial banks and other central banks already taking steps to assess such risks. She has also urged federal bank regulators to better prepare for climate-related risks to the financial system. Before receiving the White House nod, Raskin criticized Fed decisions to allow oil and gas firms to access emergency liquidity facilities in the early months of the COVID-19 pandemic. Raskin’s view on the role of climate risk in bank supervision became a flashpoint of Republican opposition to her nomination. “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,” she wrote. In her letter, Raskin accused Republicans of holding the other nominees “hostage” and turning the debate over the financial risk of climate change into a “tawdry political issue.” She also reiterated her regulatory stance and pushed back against the idea that her views were radical. “At this critical moment in our economic recovery - as the country fights inflation and faces uncertainty due to Russia’s unprovoked invasion of Ukraine - I implore my Republican colleagues to do their jobs, show up to vote YES on the remaining, eminently qualified Federal Reserve nominees,” Brown said. Sitting members Jerome Powell and Lael Brainard have been nominated as chair and vice chair, respectively, both of which require congressional approval. Lisa Cook, an economics professor at Michigan State University, and Philip Jefferson, a former Fed economist and current administrator at Davidson College, have been nominated to fill vacancies on the board. Senate Banking Committee Chair Sherrod Brown, D-Ohio, said in a statement late Tuesday that Raskin’s withdrawal meant “the American people will be denied a thoughtful, experienced public servant who was ready to fight inflation, stand up to Wall Street and corporate special interests, and protect our economy from foreign cyber attacks and climate change.”īrown also said that the committee would hold a vote on the four remaining Federal Reserve Board nominees. Pat Toomey, R-Pa., said they would advance the rest of the slate once Raskin was no longer in the running. Susan Collins, R-Maine, would also oppose her nomination further dimmed hopes that enough Republicans would emerge to support her in the broader Senate.Īfter initially raising issues with several of Biden’s nominees, Republicans on the committee, led by Sen.
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