Biden appears to have replaced the Fed with various old slates and Reuters


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© Reuters. PHOTOS: Federal Reserve Board building on Constitution Avenue is being filmed in Washington, US, March 19, 2019. REUTERS / Leah Millis / File

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(Improves board membership here to five out of six and male membership up to three out of four in paragraph 12)

By Andrea Shalal and Ann Saphir

WASHINGTON (Reuters) – US President Joe Biden has appointed former Federal Reserve governor Sarah Bloom Raskin to the top post of the Fed and two black economists – Lisa Cook and Philip Jefferson – to their party in a bid to signal a major change in society. the largest bank in the world.

The White House submitted the names to the Senate late Thursday, according to two sources familiar with the matter.

The nomination will fill a group of seven most influential members of the global economy, and will make the Fed’s top leadership very different from the races and genders in its 108-year history.

The move comes as Biden plans to revive the economy after the COVID-19 epidemic began to rise unexpectedly at a drop in prices. It gives him the opportunity to leave permanent markings on an institution that sets economic policies – particularly interest rates – that are resonating around the world.

“President Biden has appointed a large, fair, impartial panel of five people appointed to the Board of Governors of the Federal Reserve who together will bring unique talent, expertise and expertise to the Federal Reserve,” said a source well known to the Federal Reserve. elected.

“They will prioritize the rights of the Federal Reserve and are committed to fighting inflation, maintaining our economic security during the epidemic, and ensuring that our economy benefits all workers.”

The White House declined to comment.

The election sparked fire from a senior Republican member of the Senate Banking Committee, highlighting a possible election, which could be a breeze, and an inconsistent, legislative body that Democrats control only because of Vice President Kamala Harris as Senate president. .

“I’m very concerned,” Raskin said, “Senator Pat Toomey of Pennsylvania said in a statement, adding that he had tried to prevent banks from borrowing money from oil and gas companies and to run for two congressional positions – leading the Fed – a maximum. performance and price stability.

Toomey and other Republicans repeatedly questioned Fed Governor Lael Brainard, who had been selected to be part of Fed No. He also expressed skepticism about Cook and Jefferson, saying he would “see fit” if he had “the merits, the judgment, and the attitude to be like the Federal Governors.”

MORE DIFFERENT FED BOARD

Cook, a professor of economics and international relations at Michigan State University, would be the first black woman to become Fed governor. Jefferson, a professor and executive director at Davidson College in North Carolina, would be the fourth black person to appear in a group and the first in 15 years.

Biden’s decision could mean that the Board of Governor of seven members will include four women, also the first. Currently, the Fed has only five members, white and three of them are men.

“The change in the guards,” Harvard University professor Larry Katz said. This is “a new approach for elected officials who will bring important ideas and representation to the board.”

Former Fed Governor Elizabeth Duke, who worked with Raskin, told Reuters that Biden’s nominees “encouraged diverse people to do economically and to learn economics.”

Trying to make the Fed look like America is coming at a difficult time. Rising prices are at an all-time high. Unemployment is low, but U.S. employers have less than 3.6 million paid employees than they did before the epidemic.

With both prices stabilizing and boosting U.S. jobs, the Fed is debating how to raise interest rates and tighten monetary policy to boost inflation without hurting the labor market.

His current leadership has already shown its readiness to start raising interest rates in early March, with calls back from higher levels that could test the financial markets and drive the pace of governance in the run-up to the election year.

Leading the charge is Fed Chairman Jerome Powell, who Biden late last year asked him to run for a four-year term, starting next month. Senate Banking Committee held Powell election meeting https://www.reuters.com/business/feds-powell-heads-hill-hearing-with-inflation-focus-2022-01-11 Tuesday, with Fed Governor Lael Brainard , whose bid Bid has been vice-second for the central bank, appeared before the panel https://www.reuters.com/world/us/feds-most-important-task-is-control-inflation-brainard-says-2022- 01-13 Thursday.

Progressives favored a variety of options to manage Money; The Biden slate released Thursday is helping to achieve this.

Raskin, who served four years as Fed federation before being named as Deputy Treasury Secretary from 2014 to 2017, is expected to bring in more Wall Wall oversight than a second deputy to the Fed’s Treasurer, Randal Quarles, who has left the Fed. at the end of last year.

Cook has written extensively about the economic consequences of racial and gender inequality, and growing up he has faced the violence of school inequality in the US South. Jefferson wrote extensively on pay, poverty and budgeting.

Kevin Hassett, a former chairman of the Council of Economic Advisers under former President Donald Trump, said Jefferson was a “highly financial analyst” and a highly educated man who should be urgently confirmed by the Senate.

“He is an honorable, very important person that the Federal Reserve should have.”



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