Joe Biden nominates Sarah Bloom Ruskin as Fed’s top banking regulator

Joe Biden has named former Treasury Undersecretary Sarah Bloom Raskin to lead Financial regulation of the Federal Reserve.

The U.S. president sent Ruskin’s nomination to the Senate on Thursday night as the Fed’s vice chair of oversight, where she must be confirmed, according to a person familiar with the matter.

Biden also nominated Michigan State University economics and international relations professor Lisa Cook and Davidson College economics professor Philip Jefferson to fill the two remaining vacancies on the Fed’s board.

Cook will become the first African-American woman in U.S. history to serve on the Fed’s board, while Jefferson will become the fourth African-American to serve on the Fed’s board, fulfilling Biden’s promise bring greater diversity to the central bank.

The election ends months of deliberation by the Biden administration for the Fed’s top job, including the decision on the nomination Jay Powell re-elected Chair, current Fed Governor Lael Brainard serves as Vice Chair.

Powell and Brainard testify at Senate Banking Committee confirmation hearing this week, vow to prioritize fight inflation Price growth surged to the highest level in about 40 years.

Ruskin, a Duke University law professor who served as undersecretary of the Treasury during the Barack Obama presidency, has long Considered a leading contender for the position. She previously served as a Fed governor and has broad support among Democrats.

Ruskin, 60, was originally nominated to serve at the Fed in 2010 alongside Janet Yellen, who went on to become Fed chair and now serves as Treasury secretary. Ruskin played an integral role in the central bank’s implementation of the sweeping Dodd-Frank Act, which was designed to overhaul banking regulation in the wake of the global financial crisis.

At the Fed, where she also focused on addressing income inequality and strengthening consumer protection, she continued her work at the Treasury Department, in addition to leading Cyber ​​Security Related Issues.

Recently, Ruskin, who is married to Maryland House Democrat Jamie Ruskin, has become a A voice advocate for bolder action Central banks and other regulators address the financial threat posed by climate change.

“Given the unpredictable — but clearly increasing — effects of climate change on the economy, U.S. regulators need to get out of their comfort zone and act before the problem worsens and becomes more expensive,” she said wrote in September.

Republican lawmakers questioned Fed’s involvement in topics like climate change, Press Brainard At Thursday’s confirmation hearing, she supported a more active consideration of environmental risks.

Republican Senator Pat Toomey of Pennsylvania has reservations about Ruskin’s position. curb lending Fossil-fuel-intensive companies and the Fed’s support for the industry amid the crisis.

“I am very concerned that she will abuse the Fed’s narrow statutory mandate on monetary policy and bank regulation to have the central bank actively participate in capital allocation,” Toomey said in a statement. “Such action not only threatens the Fed’s independence and effectiveness, it also undermines economic growth.”

Powell has previously said that climate change is “really an issue for many other government agencies, not the Fed,” and that central banks do not and do not “seek to be climate policymakers” — comments that have Progressive critics.

But he also said he welcomes the regulatory reform of the banking sector by the central bank’s next vice-chairman.

When asked about November Elizabeth WarrenSenator Powell, a Democrat from Massachusetts, said whether he would be “submissive” to the vice chair for oversight, saying: “I want to have a perfectly normal, good constructive working relationship with anyone who is identified.”

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