Biden’s Fed nominee Raskin opposed by 24 state financial officers over ‘radical’ economic views

A coalition of Republican state financial officers are pushing back against Sarah Bloom Raskin, President Biden’s nominee to become the Federal Reserve’s top Wall Street regulator, fearing that her economic views on issues such as climate change and the private banking sector are “radical”.

In a Monday letter to the White House, 24 state treasurers, auditors and finance officials urged Biden to withdraw his nomination of Raskin as vice chairman of Fed oversight, warning that his past statements indicate that it is “willing to place the growth and stability of the American economy at risk to achieve its preferred social goals.”

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A major point of contention for state finance officials is Raskin’s stance on climate change and his view that it poses a systemic risk to the US financial system. Raskin has previously argued that all financial institutions should re-evaluate their relationships with energy companies and advocated for a push toward sustainable investments that don’t rely on carbon and fossil fuels. If banks and other financial institutions don’t take these steps to distance themselves from fossil fuel companies, Raskin said the Fed should penalize them.

Sarah Bloom Raskin, Governor of the US Federal Reserve, Tuesday, December 10, 2013. (Andrew Harrer/Bloomberg via Getty Images/Getty Images)

“We oppose the radical banking and economic views of Ms. Raskin and are deeply concerned that she would use the supervisory authority as Vice President of Supervision at the Federal Reserve Bank to disrupt the private banking industry, reliable energy supply and the U.S. economy,” the state financial officers wrote.

Signatories included financial officers from Nebraska, Arkansas, Missouri, Utah, Louisiana, Arizona, Florida, Georgia, Idaho, Indiana, Kentucky, Mississippi, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, and West Virginia. and Wyoming.

The letter comes just days before Raskin is scheduled to testify before the Senate Banking Committee on Thursday, along with two other academic economists Biden has tapped to join the central bank’s board of governors: Lisa Cook and Philip Jefferson. Nominees must be approved by a simple majority vote in the Senate.

As vice president of oversight, Raskin — a Duke University law professor who has held high-level positions at the Treasury Department and the Fed — would oversee annual stress tests that examine security and safety. bank liquidity. Her nomination has been welcomed by progressive senators and advocacy groups, who believe she will take a tougher stance against Wall Street than her predecessor, Randal Quarles, a Trump nominee who resigned last month.

But Republicans are already preparing to fight Raskin’s appointment as the Fed’s top regulatory czar: A senior GOP official told FOX Business that the party has “serious concerns” about its efforts to develop financial regulatory policies for cryptocurrencies and the fight against climate change. Raskin’s husband, Rep. Jamie Raskin, D-Md., also led former President Trump’s second impeachment trial.

A man wearing a mask walks past the US Federal Reserve Building in Washington DC, April 29, 2020. (Xinhua/Liu Jie via Getty Images/Getty Images)

Raskin previously served on the Fed’s board of directors from 2010 to 2014 and was hired by former President Obama to serve as deputy treasury secretary.

Senator Pat Toomey, a senior member of the Senate Banking Committee, is expected to press Raskin on his view that federal policymakers are taking “bold action” to avert an “economic catastrophe” brought on by climate change. He also plans to challenge his calls for the Fed to extend credit to businesses and deny credit to disadvantaged businesses, such as oil and gas companies.

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“I have serious concerns that she is abusing the Fed’s narrow statutory monetary policy and banking supervision mandates to get the central bank to actively engage in capital allocation. Such actions not only threaten the both the independence and effectiveness of the Fed, but would also weaken economic growth,” Toomey, R-Pa., said in a statement.

Late last year, Biden nominated President Jerome Powell for a second four-year term as head of the central bank and chose current Fed Governor Lael Brainard as his second-in-command. Fed.

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