The Raskin Nomination: A Divisive Choice
The nomination of Sarah Bloom Raskin as vice chair for supervision at the Federal Reserve has sent a ripple effect through the Senate Banking Committee, fueling a fiery partisan debate. While President Biden hopes to shake things up at the Fed, it seems this pick might have stirred the pot a bit too vigorously.
Republican Senators’ Response
In a twist worthy of a political thriller, ranking member Senator Pat Toomey led the charge for a boycott of the meeting where the Fed nominees were to be voted on. He urged his 12 Republican colleagues to skip out, leaving Raskin in the lurch, as the rest of Biden’s nominees were set to sail through the approval process.
Concerns Over Lobbying Allegations
What’s fueling the Republican resistance? Allegations from 2017 about Raskin’s lobbying efforts on behalf of Reserve Trust, a fintech firm where she served as a board member. Toomey and others are concerned about her attempts to secure access to the Kansas City Fed’s payments systems. Spoiler alert: it worked out—Reserve Trust got what they wanted.
Senate Hearing Drama
The tension escalated during a February 3 hearing, where Senator Loomis put Raskin on the hot seat. In a moment that could’ve rivaled reality TV, Loomis pushed for clarity on Raskin’s role in those lobbying allegations. Did Raskin confirm or deny? Well, that’s the cliffhanger—she played it coy, neither confirming nor denying her involvement.
A Call to Action from Senator Brown
Despite the tumult, Democratic Senator Sherrod Brown is calling for swift action to confirm all nominees. “We need a full Federal Reserve Board of Governors,” he said, emphasizing that inflation waits for no one. If only ticking clocks could resolve political disputes!
Filling the Vacancies
With the Fed board operating below capacity for nearly a decade, Biden’s nominations include Jerome Powell and Lael Brainard as chair and vice-chair respectively, alongside Lisa Cook and Philip Jefferson. Raskin, if confirmed, would be stepping into the role of vice chair for supervision. Nothing says pressure like a possible 4-year term dangling in front of you!
