Biden Fed candidate Sarah Bloom Raskin is stepping down, source says | Money

As the United States sees consumer prices rise at a rate not seen in four decades, the Fed is poised to begin raising interest rates from zero this year. —Photo Reuters

NEW YORK, March 16 — Sarah Bloom Raskin, U.S. President Joe Biden’s nominee for the post of Federal Reserve Banking Officer, said on Tuesday she was withdrawing her name, a source familiar with the matter told AFP.

Raskin previously won bipartisan endorsement for senior positions at the Fed and Treasury, but faced opposition from Republicans as well as a key Democratic lawmaker over his stance on climate change.

Disagreements over Raskin’s nomination had led the Republican opposition in the Senate to boycott a committee vote on his post and four other top Fed posts, stalling their progress toward approval by the upper house of Congress.

In a letter published by the new yorkerRaskin cited the boycott as the main factor in his decision to quit.

“There is hard and urgent work to do for the Federal Reserve,” she wrote.

“If I walk away from this confirmation process, there can no longer be an excuse for a continued boycott of the ‘notice and consent’ process of the Constitution and the corresponding refusal of the Senate to address real economic needs. of our country. With a heavy heart, I therefore withdraw my candidacy.”

The Biden administration’s hopes of ending the blockade were badly damaged on Monday when Sen. Joe Manchin, a centrist Democrat in the chamber where the party has a one-vote majority, cited Raskin’s statements that, he said were hostile to the oil industry and said he would not. support his candidacy.

As the United States sees consumer prices rise at a rate not seen in four decades, the Fed is set to begin raising interest rates from zero this year, with the first increase expected at the end of of its political meeting on Wednesday.

In a statement, Biden said Raskin had come under “baseless attacks from industry and conservative interest groups,” and accused Republicans of being “more focused on amplifying these false assertions and the protection of special interests than on taking significant steps to fight inflation and reduce costs for the American people.”

Sherrod Brown, the Democratic chairman of the Senate Banking Committee, said that with Raskin removed, “the American people will be denied a thoughtful, experienced public servant who was prepared to fight inflation, stand up to Wall Street and vested corporate interests and to protect our economy from foreign cyberattacks and climate change.

Biden had named Raskin in January as vice president for oversight, which oversees the country’s banks, and also tapped Lisa Cook and Philip Jefferson to fill two other vacancies on the Fed board. , consisting of seven people.

The Senate Banking Committee was considering their candidacies as well as those of Fed Chairman Jerome Powell, whom Biden has nominated for a second term as head of the central bank, and Lael Brainard, whom the chairman has named Powell’s deputy.

Powell is a Republican, but Brainard and Raskin are Democratic. Biden has pledged to increase diversity at the central bank, and Jefferson is African American while Cook would be the first black woman on his board. —AFP