Topline
Conservative Democratic Sen. Joe Manchin (W.Va.) announced Monday he will join Republicans in opposing President Joe Biden’s pick for the Federal Reserve’s top banking regulator role, in Manchin’s latest critical break from Democratic colleagues.
Key Facts
Manchin said in a statement that he is “unable to support” Sarah Bloom Raskin, Biden's nominee, for the Federal Reserve’s vice chair for supervision position, claiming she is too partisan.
Republicans have delayed the confirmation process for Raskin and four other nominees to the Fed board over comments she made about climate change and her connection to a Colorado fintech company.
Raskin in the past said financial regulators should take risks from climate change into account when making loans, prompting concerns she could use her Fed role to pressure banks not to lend to oil companies.
At a recent confirmation hearing, Raskin repeatedly denied she’d use the Fed position to influence loan decisions, saying, “Banks choose their borrowers; the Fed does not.”
Republicans have also expressed concern Raskin may have used her existing regulatory connections to win a Fed master account for the fintech firm Reserve Trust, where she was on the board of directors.
A master account provides a company with direct access to the Fed’s payment systems, but Raskin and the Federal Reserve Bank of Kansas City, which authorized the master account, have denied any wrongdoing.
Crucial Quote
“Her previous public statements have failed to satisfactorily address my concerns about the critical importance of financing an all-of-the-above energy policy to meet our nation’s critical energy needs,” Manchin said.
Key Background
Raskin is not expected to have a single Republican vote in support, meaning even one Democratic senator going against her confirmation would be enough to kill her chances in the evenly split chamber. The White House has pushed for urgency in the confirmation process for Raskin and others, including renominated Fed chairman Jerome Powell, arguing that confirming Fed board members swiftly is critical to tackling historically high rates of inflation. Manchin’s apparently fatal blow to Raskin’s chances is just the latest instance of him blocking the agenda of Democratic leadership. Manchin notably doomed Democrats’ hopes of passing major (and popular) pieces of legislation like the Build Back Better social spending bill and nationwide voting reform.
Tangent
Raskin is married to Democratic Rep. Jamie Raskin of Maryland.
Further Reading
Senate Republicans block a key vote on Biden's nominations for the Federal Reserve (NPR)
Biden’s Pick for Top Bank Cop Faces Narrow Path to Confirmation (New York Times)
