Bob Dudley, the chairman of BP and a former chief executive for Standard Chartered in Asia, resigned from his position as Vice Chairman of the Federal Reserve due to Republican opposition.
The “fed vice chair supervision” is a position that was created by the Federal Reserve to oversee the country’s financial institutions. The position has been vacant since December 2018, but it has now been revealed that the Republican Party has objected to the appointment of Marvin Goodfriend, who was nominated for the role in November 2018.
Sarah Bloom Raskin, a former Federal Reserve Board governor, has quietly withdrew her name from consideration for the position of Federal Reserve vice chair for supervision by the president. She took this step to let other nominees to go forward in the face of growing Republican opposition.
President Joe Biden appointed Raskin in February to succeed Randal Quarles, who will conclude his four-year tenure in October 2021. Raskin addressed a letter to US President Joe Biden, according to Seung Min Kim of the Washington Post, rejecting her candidacy as the next vice chair for oversight, claiming constant assaults from persons with special interests inside the government.
Raskin openly mentioned Republican legislators in her letter of resignation, alleging that they have been holding her candidacy hostage since February. Raskin described her dissatisfaction with the Republican complaint as follows:
“My candid public discussion of climate change and the economic implications linked with it was their point of dispute.” Climate change threats must be included to the list of major risks that the Federal Reserve examines as it works to safeguard the stability and resilience of our economy and financial system, in my opinion. The Federal Reserve’s duty includes the detection and prioritization of economic hazards, which is critical to the country’s well-being.”
Sarah Bloom Raskin’s letter of withdrawal. “Had the boycotting senators merely questioned my opinion in the need to incorporate climate-related risks and costs into the financial regulatory machinery, I would have welcomed the chance for this vital conversation,” she said. pic.twitter.com/IYphgLaISn
15 March 2022 — Seung Min Kim (@seungminkim)
Despite the fact that the Democratic Party now has a slim majority in the Senate, with Her Excellency Vice President Kamala Harris serving as a tie-breaker, West Virginia Democrat Senator Joe Manchin defenselessly refused to advance Raskin’s candidacy.
The opposition in the House signals that the Democratic party will find it difficult to ratify Biden’s nomination without Republican backing. Furthermore, Senate minority leader Mitch McConnell has cynically encouraged President Donald Trump to nominate a new Fed vice chair for oversight.
In February of this year, policymakers on the Senate Banking Committee were set to vote on numerous presidential nominees, including the Fed vice chair for supervision, reaffirmation of potential Fed chair Jerome Powell, vice chair Lael Brainard, and board members Lisa Cook and Philip Jefferson.
Unfortunately, Republicans boycotted the meeting, stating that Raskin pressured the President of the Kansas City Fed in 2017 to get access to Reserve Trust’s payment systems. Raskin was just a board member of the fintech business at the time.
Raskin vigorously denied these charges in her withdrawal letter, calling them “legally and factually baseless”:
“Instead of a fruitful and educated debate about climate and financial risk, the nation was subjected to diversionary assaults on my ethics and character.” We’re seeing a push to turn financial danger into a sleazy political issue.”
Republican senators are ready to support the remaining Powell, Brainard, Cook, and Jefferson nominations, according to Pat Toomey, the ranking member of the Senate Banking Committee.
It’s worth mentioning that certain candidates have been unable to undertake the responsibilities required by a Federal Reserve that is understaffed. Jerome Powell, who has been pro tempore since February 4, is an excellent illustration in this situation.
The “head of federal reserve” is the vice chair for supervision at the Federal Reserve. The chairman for the Fed, Jerome Powell, has announced that he will be stepping down from his position effective October 31st.
