Revamping the Federal Reserve Board
The Biden administration is stirring the pot at the Federal Reserve as it looks to fill several vacant seats on the board of governors. Among potential nominees is Sarah Bloom Raskin, a Duke University law professor and former Federal Reserve economist, framed as a candidate who could shake things up in the economic advisory circle.
The Contenders: Who’s Who?
Biden’s consideration goes beyond Raskin, as economic heavyweights like Lisa Cook and Philip Jefferson are also in the mix. Cook isn’t just any professor; she’s a high-ranking academic at Michigan State University and has even graced the White House’s Council of Economic Advisers during Obama’s presidency. Jefferson, meanwhile, isn’t a stranger to the Fed, having worked as a research economist with deep insights into monetary policy.
Senate Confirmation: The Waiting Game
While these potential nominees are making headlines, the White House is actively seeking confirmations for Jerome Powell and Lael Brainard as Fed chair and vice-chair, respectively. Should the Senate come through, we’re looking at a pair of seasoned captains steering the ship until 2026. But, hang tight—Raskin, Cook, and Jefferson might be in line for serious long-term roles if their nominations are given a green light.
What Sparking Changes Means for Crypto
One of the sizzling topics swirling around is the future of cryptocurrencies in the U.S. financial system. With significant changes among the decision-makers, including the expected exits of Randal Quarles and Richard Clarida, how will the new leadership view digital assets? Biden has expressed a desire for diversity on the board, potentially reshaping how the Fed approaches crypto regulation.
Shaking Up Other Regulatory Agencies
Don’t look now, but it’s not only the Fed that’s on the brink of transformation. Agencies like the SEC and CFTC are bracing for changes as well. The SEC’s Elad Roisman is set to leave by the end of January, while Allison Lee’s role is dangling by a thread until June. Add to that a possible upheaval at the CFTC, where only two out of five commissioners are currently holding down the fort. Biden’s nominations are crucial in ushering in financial experts who could steer crypto regulations into uncharted territory.
