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Biden puts stamp on Fed with bank regulator, board diversity

Jennifer Jacobs and Jennifer Epstein, Bloomberg News on

Published in News & Features

Raskin is likely to be assailed by Republicans who have been railing against what they see as mission creep outside of the Fed’s narrow statutory mandates, including on issues like climate and racial justice. If all 50 Republicans unite against her, she would need every member of the Democratic caucus in the Senate to support her in order to be confirmed.

Pat Toomey of Pennsylvania, the top Republican on the Senate Banking Committee, reiterated Thursday evening that he has “serious concerns” about Raskin.

“I have serious concerns that she would abuse the Fed’s narrow statutory mandates on monetary policy and banking supervision to have the central bank actively engaged in capital allocation,” Toomey said in a statement.

White House officials notified some U.S. senators about the news on Thursday night. The White House does not plan for the nominees to appear at an event with Biden, a person familiar with the matter said.

Inclusive Employment

The picks are likely to join the dovish wing of the policy debate as officials balance their concerns over inflation against a commitment to seek full employment that is both broad-based and inclusive. If confirmed, they will vote on monetary policy at each Federal Open Market Committee meeting; their views could influence the pace at which the Fed raises interest rates in coming years, and how high the central bank goes.

 

Raskin was reportedly considered, and passed over, for other top jobs in the Biden administration, including head of the Office of the Comptroller of the Currency, and a new post within the Treasury heading up climate policy.

She is currently a law professor at Duke University. Under the Obama administration, she served as deputy secretary of the Treasury from 2014 to 2017. Before that she was a governor at the Fed and Maryland’s commissioner of financial regulation.

“No. 1, she’s brilliant. No. 2, she’s such a personable individual,” Kathleen Murphy, president of the Massachusetts Bankers Association, said Thursday.

Raskin is married to a prominent Democratic lawmaker from Maryland, Representative Jamie Raskin, who was lead manager for the second impeachment trial of former President Donald Trump.

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