US President Joe Biden on Friday announced nominations for vacant seats on the Federal Reserve (Fed) board, including the first black woman to serve as governor of the central bank.
The White House said in a statement that the officials “will long bring diversity to the Fed’s leadership.”
Additionally, these nominations could influence financial policymaking at a time when the Fed is poised to raise benchmark interest rates to combat rising prices while also supporting the ongoing economic recovery under the coronavirus pandemic. coronavirus.
Lisa Cook, an economics professor at the University of Michigan, will be the first African American on the Fed’s seven-seat board of governors.
And Philip Jefferson of Davidson College would be the fourth black man to serve on that panel.
On his side, the former number two of the Treasury Department, Sarah Bloom Raskin, will take over the key position of banking regulation at the Fed, as The Wall Street Journal had anticipated on Thursday.
Raskin, a Democrat calling for more action on climate change, would take over as the nation’s top banking regulatory official if she gets the Senate’s leave.
He will replace Randal Quarles, a nominee for former President Donald Trump who resigned in December at the end of his term.
The appointment would appease Democratic party progressives who have criticized Fed chief Jerome Powell for not acting enough on the climate front, though he will likely face resistance from Republicans.
In 2021, Biden re-nominated Powell for a second term at the helm of the Fed and named board member Lael Brainard to serve as vice chair, which would make the majority of the board female if the Senate confirms. to all.