After Senator Joe Manchin (D.WV) stated he wouldn't vote to confirm Sarah Bloom Raskin, President Joe Biden declared that he would withdraw his nomination of Raskin for the Federal Reserve Board of Governors (the Fed). He expressed his concern about her pro-climate-change advocacy.
If confirmed, Raskin would be the vice chair for supervision at the Federal Reserve. This position would give her the power to regulate the banking industry and possibly politicize it.
Manchin stated Monday that the Federal Reserve Board was not an institution that should politicize critical decisions. Manchin noted that it was “imperative” the Federal Reserve Board maintains its independence and avoids any hint of partisanship.
Raskin had written an opinion piece in The New York Times in which she described the dying oil industry and suggested that banks should be discouraged from financing it.
She was quizzed by Republicans such as Senator Cynthia Lummis (R.WY) about how she might have used her influence from the Fed to secure a lucrative financial instrument for her company.
And Senate Banking Committee Ranking Member Pat Toomey (R.PA) stated that Biden's decision not to withdraw is a signal to the banking sector not to politicize it. According to Toomey, the Senate's rejection of Sarah Bloom Raskin’s nomination sends a strong message to the Fed and all financial regulators that they are not responsible for allocating capital or diverting from their mission to pursue politically charged or extraneous campaigns. He suggested that the Biden Administration should name in her place a person who will focus only on the Fed's statutory mandates for stable prices, full unemployment, and supervision of bank-holding companies.
“Great news all around. It’s essential we have Fed nominees who will not unfairly punish Wyoming energy companies and the jobs and revenues they support,” Senator Lummis Tweeted in response to Raskin's withdrawal.
“It is evident that Ms. Raskin did not receive the votes and was heading towards failure,” Senator Bill Cassidy (R.LA) stated. “Our economy relies on monetary policies that are objective and not ideological or political activists at the Fed. It was time to withdraw her nomination.”
Cassidy also told the Breitbart News Network that Raskin had advocated policies that would eliminate thousands from oil and natural-gas jobs, giving Russia greater “leverage” in the world.
This is the second time that the climate-change policies of a Biden banking nominee have cost her her nomination. After Republicans and Democrats had opposed her controversial views about eliminating community banks and fossil-fuel corporations, Saule Omarova withdrew her name for the office of the comptroller of the currency.