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    Biden appoints Sarah Bloom Raskin as Vice-Chairman of the Federal Reserve Board

    Sarah Bloom Raskin, Deputy Treasury Secretary of the Treasury Department in Washington, October 2, 2014.

    Yuri Gripas | Reuters

    President Joe Biden According to those familiar with the matter, Sarah Bloom Ruskin will be appointed as the next Vice-Chairman of the Federal Reserve Board and is probably the most powerful banking regulator in the country.

    Biden will also appoint Lisa Cook and Philip Jefferson to the Federal Reserve Board, according to those who have asked not to be named for free speaking.

    In the coming weeks, each candidate will face questions from the Senate Banking Commission, the parliamentary body responsible for reviewing the appointment of the president to the central bank. If the Senate confirms their nomination, Cook is the first black woman to serve on the Fed’s board, and Jefferson is the fourth black man to do so.

    The committee held a nomination hearing for the Fed chair on Tuesday. Jerome Powell,Who Biden chose to nominate for the second term..It held a similar hearing for the Federal Reserve Board Lael Brainard On Thursday, Biden was elected the next Vice-Chairman of the Central Bank.

    Biden named after former Federal Reserve Board Paul Volcker, who strengthened legislation passed in the aftermath of the financial crisis and limited banking capabilities when choosing Ruskin as vice chairman of the supervisory post. Trying to take advantage of the Democratic Party’s promise to restore aspects of the rules that have been made, in exchange for their own interests.

    Ruskin has experience with the Fed and was Deputy Secretary of Finance under the Obama administration after serving as President of the Central Bank from 2010 to 2014. She is married to Congressman Jamie Raskin, D-Md.

    Both Powell and Brenard are expected to clear the Senate with bipartisan support without fanfare, but Ruskin, Cook and Jefferson were able to see more stringent confirmation odds. Pat Toomey, a Pennsylvania Republican Senator and ranking member of the Banking Commission, quickly found Biden’s latest options.

    “Sara Bloom Ruskin tells the Fed to block banks from credit to traditional energy companies and exclude their employers from the Fed’s emergency lending facilities, he said in a statement Thursday evening. I specifically asked for pressure. ” “I am seriously concerned that she may abuse the Fed’s narrow statutory obligations on monetary policy and banking supervision in order to actively engage central banks in capital allocation. “

    “I will scrutinize whether Cook and Jefferson have the experience, judgment, and policy views needed to serve as the Federal Reserve Board,” he added. ..

    Jefferson’s name recently appeared in a private debate to serve as governor, but Cook’s nomination was often telegraphed. CNBC reported in May: She was the best choice Senator Sherrod Brown, chairman of the Banking Commission and a Democrat of Ohio, will be the president.

    “With these candidates, President Biden is showing the country what the Federal Reserve will look like on the side of workers and their communities,” Mr Brown said in a statement Friday morning. Stated. They will “provide an important perspective on the Federal Reserve on the economic problems facing women, black and brown workers, and the rural and industrial communities across the country.”

    Cook is a professor of economics and international affairs at Michigan State University. She is also a member of the Steering Committee of the Center for Equitable Growth, a progressive Washington-based think tank that counts some of Biden’s top economists among alumni. She also served as a senior economist on the Obama administration’s economic advisory board.

    Jefferson, on the other hand, is the Vice-President and Dean of Academic Affairs at Davidson College. His decades of career as a scholar has focused on the labor market and poverty.

    His notable achievements include a 2005 study assessing the costs and benefits of monetary policy, which promotes a “high-pressure economy” in which the FRB facilitates access to cash, lowers interest rates and promotes tight labor markets. It is included.

    He and other economists, including Brenard, generally argued that, apart from unusual economic conditions, the additional benefits of low interest rates on maximum employment deserve the possibility of warmer inflation.

    Ruskin and regulation

    Since leaving the government, Ruskin has pressured the FRB and other financial regulators to play a more active role in addressing the financial risks posed by climate change.

    “Neither of its regulators is specifically designed to mitigate the risk of climate-related events, but each embraces these risks within the means already given by Congress. Has wide enough authority to Written in September..

    “In light of the unpredictable but apparently intensifying economic implications of a changing climate, U.S. regulators have left the comfort zone before the problem worsens and is more expensive to deal with. We need to act early, “she added.

    Former Fed Vice-Chair Randal Quarles, who recently left the Federal Reserve Board, has reduced capital requirements for U.S. banks with assets of less than $ 700 billion, and Volcker Rule on transactions by JPMorgan Chase, Goldman Sachs and others. Rule audit played a major role in relaxing the rules. Investment bank.

    CNBC politics

    Read more about CNBC’s political coverage:

    Fed officials who support a simpler regulatory stance argue that the industry is well-capitalized and does not require some of the more restrictive measures enacted as a result of the crisis.

    Many Democrats, including Massachusetts Senator Elizabeth Warren, disagreed, saying rollbacks tend to make the banking sector more vulnerable to shock and take excessive risk.

    Inflation fight

    Biden appoints Sarah Bloom Raskin as Vice-Chairman of the Federal Reserve Board

    Source link Biden appoints Sarah Bloom Raskin as Vice-Chairman of the Federal Reserve Board

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