FRB Vice Chair for Supervision Nominee Withdraws; Senate Advances Remaining Nominees
Commentary by Joseph P. Vitale
In a letter to President Joseph R. Biden, Sarah Bloom Raskin withdrew her candidacy to serve as Vice Chair for Supervision of the Federal Reserve Board. The Senate reportedly advanced the four remaining nominees.
In the letter, Ms. Raskin cited Republican opposition regarding her public positions on climate change and its associated economic costs as the reason for her withdrawal. Ms. Raskin said that she viewed climate change as only one of a number of risks to the financial system, to include cybersecurity among others. She noted that she was not alone in viewing climate change as a financial risk, and that other government agencies and private financial institutions did so as well.
During the confirmation process, Mr. Raskin stated that Republicans held up not only her own nomination, but also those of Chair Jerome Powell, Governor Lael Brainard, and Professors Lisa Cook and Phillip Jefferson. In accepting her withdrawal, President Biden expressed gratitude for Ms. Raskin’s willingness to serve, and urged the Senate Banking Committee to swiftly confirm the four other nominees for the Federal Reserve Board. After Ms. Raskin's withdrawal, the Senate advanced the nominations of Jerome Powell as Chair, Lael Brainard, Lisa Cook and Philip Jefferson.
Commentary
On Monday, Senator Joe Manchin, a West Virginia Democrat, publicly opposed Ms. Raskin’s nomination. His opposition meant that she would need to pick up at least one Republican vote to obtain Senate confirmation. But, when Republican Senators Susan Collins of Maine and Lisa Murkowski of Alaska echoed Manchin’s opposition, it became clear that Ms. Raskin would be unable to garner any Republican votes and, as a result had no chance of being confirmed.