Biden’s nominations for the Fed board include the first black woman


President Joe Biden on Friday announced the nomination of three members to the Federal Reserve’s governing body, including former Fed and Treasury official Sarah Bloom Raskin, who is the first black woman to serve in the top regulatory slot and Lisa Cook. Board of the Fed.

Biden nominated Philip Jefferson, dean of economists and former Fed researcher at Davidson College in North Carolina. The three nominees to be confirmed by the Senate will fill the Fed’s seven-member board.

He joins the Fed at a particularly challenging time as the central bank is tasked with raising its benchmark interest rates to try to curb high inflation, without reducing the recovery from the epidemic. On Wednesday, the government reported that inflation reached a four-decade high in December.

If approved, Biden’s options would significantly increase the Fed’s diversity. Cook and Jefferson were only the fourth and fifth black governors in the Fed’s 108-year history. And for the first time, the majority of the board will include women appointees.

At the end of November, Biden nominated Jerome Powell for a second four-year term as Fed chairman and elected Fed board member Lale Brainard as vice president.

“This group brings much needed expertise, judgment and leadership to the Federal Reserve, and at the same time brings a diversity of thought and vision that has never before been seen on the Board of Governors,” Biden said in a statement Friday.

President Biden’s choices, if approved, would significantly increase the Fed’s diversity.
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Raskin’s nomination for the Fed Vice-President position for oversight of the nation’s top bank regulator is welcomed by progressive senators and advocacy groups, who see Trump as more likely to take a tougher approach to bank control than Randall Quarles. Last month low. She is also seen as someone who is committed to incorporating climate change considerations under the oversight of the Fed’s banks. For that reason, he has already won opposition from some Republican senators.

Raskin, a 60-year-old Harvard-trained lawyer, previously served on the Fed’s seven-member board from 2010 to 2014. President Barack Obama then chose to serve as Deputy Treasury Secretary, No. 1 in the Department. 2 Occupation.

As Fed Governors, Raskin, Cook, and Jefferson vote on interest rate policy decisions at eight meetings of the Fed’s Policy Committee, each comprising 12 regional Fed Bank presidents.

Ruskin’s first term as Fed governor followed his job as Maryland’s financial regulator, who oversaw state banks during the 2008 financial crisis.

Sarah Bloom Raskin
Sarah Bloom Raskin, a former Fed and Treasury official, was tapped to be the Fed vice president for oversight – the nation’s top bank regulator.
AP

Kathleen Murphy, CEO of the Massachusetts Bankers Association, worked with Raskin during her tenure as banking regulator in Maryland from 2007 to 2010. At the time, Murphy was leading a group of Maryland bankers. Murphy said the state’s financial industry views her as “a strong regulator but a fair regulator.”

“She’s always had a collaborative approach,” Murphy said. “She wanted to make sure all the voices were at the table when making decisions.”

Still, Raskin is likely to draw fire from critics for his progressive views on climate change and the oil and gas industry. Two years ago, in an opinion poll in the New York Times, he criticized the Fed’s willingness to support lending to oil and gas companies as part of efforts to boost the financial sector in the midst of the recession.

“The Fed’s decisions on our behalf must be built towards a stronger economy with more jobs in innovative industries – not supporting those who are dying and enriching them,” Raskin wrote, referring to oil and gas suppliers.

The exterior of the upper portion of the Federal Reserve building
Biden nominated Philip Jefferson, dean of economists and former Fed researcher at Davidson College in North Carolina. Jefferson and Cook were only the fourth and fifth black governors in the Fed’s 108-year history.
AP

Thursday, the top Republican Senate on the Senate Banking Committee. Pat Toomey, Raskin commented that he “explicitly advocated that the Fed allocate capital by denying capital to this undesirable sector.”

Raskin married Liberal Maryland Democrat Representative Jamie Raskin, who gained widespread visibility as a member of the House Judiciary Committee when he brought indictment charges against President Donald Trump.

Cook has been a professor of economics and international relations at Michigan State since 2005. He was a staff economist at the White House Council of Economic Advisers from 2011 to 2012 and was a consultant to the Biden-Harris transition team at the Fed and the Bank. Regulatory Policy.

Cook is best known for her Research on the impact of racial violence On African-American invention and innovation. The 2013 paper he wrote concluded that racially motivated violence, undermining the rule of law and threatening personal security, depressed 15% of black Americans annually between 1882 and 1940, depressing patent awards – a loss they found prevented the broader US economy.

Jerome Powell
Biden’s nominees join the Fed, headed by President Jerome Powell, during which the central bank is working to increase its benchmark interest rate and try to prevent high inflation.
AFP by Getty Images

In an interview in October, Cooke struggled for years to publish the paper, despite the backing of prominent economists Milton Friedman and George Akerloff. He said major economics journals usually do not deal with “patents, or economic history, or anything related to African-Americans.”

Cook is an advocate for black women in economics, which is significantly less diverse than other social sciences. In 2019, she co-authored a column in the New York Times, which asserted that “economics is not a welcome or supportive profession for women” and “particularly anti-black women.”

To address those issues, Cook has spent time mentoring younger black women in economics, directed a summer program run by the American Economic Association, and won an award for mentoring in 2019.

Raised in a working-class family in Jefferson, Washington, DC, according to one Interview with the American Economic Association, Focusing her research on poverty and monetary policy. In a 2005 paper, he concluded that the benefits of a hot economy outweighed by unemployment reductions in low-skilled workers outweigh the costs, including the risk of automation when companies rarely grow.

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