Democratic Party Opposes by One Vote... Biden Withdraws Raskin's Nomination for Fed Vice Chair

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Sarah Bloom Raskin, who was expected to play a key role in financial reform under the 'Powell 2.0' Federal Reserve (Fed) system envisioned by U.S. President Joe Biden, has ultimately withdrawn her nomination. After a decisive vote against Raskin's confirmation as Fed Vice Chair emerged not only from the Republican Party but also from within the ruling Democratic Party, President Biden withdrew her nomination.

According to the White House on the 15th (local time), President Biden stated in a press release that "Raskin was a well-prepared candidate but faced baseless attacks from industry and conservative interest groups," announcing the withdrawal of her nomination. He expressed regret over the Republican opposition, saying, "Unfortunately, Republican senators focused more on amplifying these false claims and protecting their own interests than on taking key actions to address inflation and reduce costs for Americans."

In January, President Biden nominated Raskin, a former Deputy Treasury Secretary, as the Fed Vice Chair for financial supervision. Accordingly, the confirmation of five Fed board members, including current Fed Chair Jerome Powell (for a second term) and nominee Raskin, was expected. However, controversies surrounding Raskin led to a deadlock in launching the second term.

The Republican Party raised concerns that Raskin did not adequately respond to allegations of abuse of power during her time at a private fintech company and that, based on her previous research and statements, she might impose financial support regulations on fossil fuel companies.

Especially in the Senate, where Democrats and Republicans are evenly split 50-50, the official opposition from moderate Democrat Senator Joe Manchin the day before led to the eventual withdrawal of the nomination.

The Wall Street Journal (WSJ) reported that Raskin conveyed her intention to resign to President Biden in a three-page letter immediately after Senator Manchin announced his position.

Following this withdrawal, the Senate Banking Committee is expected to soon proceed with confirmation votes for the other four Fed board members. Despite the setback in financial reform, it is anticipated that the confirmations of the other four will proceed swiftly. Major foreign media outlets have mentioned Richard Cordray as a possible candidate for the Fed Vice Chair position instead of Raskin. However, local media report that finding a candidate who satisfies both Democrats and moderates will not be easy.

This content was produced with the assistance of AI translation services.