Biden Says Withdrawing Controversial Nominee Raskin From Federal Reserve Job

WASHINGTON (Sputnik) - US President Joe Biden acknowledged on Tuesday that he was withdrawing his nomination of economist Sarah Bloom Raskin to the board of the Federal Reserve due to opposition by his Senate Republican rivals, urging them to fast-track instead four other names he put up for the governance of the central bank.

“I am grateful for Sarah’s service to our country and for her willingness to serve again, and I look forward to her future contributions to our country,” Biden said in a statement issued by the White House.

“I urge the Senate Banking Committee to move swiftly to confirm the four eminently qualified nominees for the Board of Governors — Jerome Powell, Lael Brainard, Philip Jefferson, and Lisa Cook — who are still waiting for an up-or-down vote. This group has the experience, judgment, and talent necessary to lead the Federal Reserve at this critical moment in our economic recovery, and the Senate should move their nominations forward.”

Powell is the current chairman of the Federal Reserve, nominated for a second term of four years. Brainard will serve as vice chair of the central bank.

Raskin’s nomination was opposed by Senate Republicans who feared she would be too aggressive when it came to policing climate risks within the financial system and would overstep the unelected central bank’s boundaries. That aside, they alleged that she helped a hedge fund obtain a coveted master account at the Federal Reserve, using her influence as a deputy Treasury Department secretary.

Biden expressed regret with the opposition shown toward Raskin, saying her nomination had broad support — from the banking and financial services community, former members of the Federal Reserve’s Board of Governors, multiple Nobel Prize winners, consumer advocates and respected economists from around the country.

The president also argued that after serving as the second-in-command at Treasury and with prior service on the Federal Reserve Board of Governors, Raskin knew better than many others about the central bank’s role in fighting inflation and continuing sustainable economic recovery.

Biden also described as “unparalleled” Raskin’s experience in pursuing solutions to enhance US critical financial infrastructure, due to her expertise in cybersecurity and climate risk, and protecting consumers in the financial marketplace.

“Despite her readiness — and despite having been confirmed by the Senate with broad, bipartisan support twice in the past — Sarah was subject to baseless attacks from industry and conservative interest groups,” he said. “Unfortunately, Senate Republicans are more focused on amplifying these false claims and protecting special interests than taking important steps toward addressing inflation and lowering costs for the American people.”

Prior to Biden’s statement, Raskin herself sent a letter to the White House on Tuesday, asking that her name be withdrawn from consideration for the Federal Reserve job, according to a report by the New Yorker.

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