WASHINGTON (AP) – President Joe Biden has nominated three new members to the Federal Reserve’s Board of Governors, including Sarah Bloom Raskin, a former Federal Treasury official, and Lisa Cook, the first black woman to serve. on the board of the Fed.
Biden will also nominate Phillip Jefferson, an economist, faculty chief at Davidson College in North Carolina and a former Fed investigator, according to a man familiar with the ruling Thursday who was not allowed to comment on the case. Three nominees, to be approved by the Senate, will fill a seven-member Fed committee.
The nominees have joined the Fed at a critical juncture in which the central bank will do the hard work of raising its interest rate to reduce inflation, without reducing the recovery rate. On Wednesday, the government said inflation had reached a ten years in December. The economic downturn has become a major economic crisis, a burden on millions of Americans and a political threat to the Biden government.
Raskin’s nomination for the position of Vice-Chairman of the Presidency – Superintendent of Central Banks – will be welcomed by progressive senators and freedom fighters, who see him as more likely to take a stronger approach to banking than Randal Quarles, a Trump-appointed candidate. . down from these last month. He is also seen as a volunteer to incorporate climate change perceptions into the analysis of Fed banks. For these reasons, he has already been criticized by some Republican senators.
Harvard-trained lawyer Raskin, 60, has served on the board of seven Fed members from 2010 to 2014. It was President Barack Obama who nominated him to be the Deputy Secretary of Treasury, No.
As Fed governors, Raskin, Cook and Jefferson vote on interest rates at eight annual meetings of the Fed’s policy-making committee, which also includes the 12 presidents of Fed banks.
Raskin’s first term as Fed’s governor followed his tenure as Maryland’s financial law commissioner. Prior to his government career, Raskin had worked as a lawyer for Arnold & Porter, a well-known Washington-based company, and as a director at Promontory Financial Group.
Kathleen Murphy, CEO of the Massachusetts Bankers Association, worked with Raskin while Raskin was a bank manager in Maryland from 2007 to 2010 and Murphy led a Maryland banking group. Murphy said financial institutions in the state see him as “a powerful but straightforward regulator.”
“They always have a way of helping each other,” Murphy said. “He wanted to make sure all the words were on the table when making decisions.”
However, Raskin has to take fire from the opposition because of his forward-looking views on climate change and the oil and gas industry. Two years ago, in a New York Times article, he criticized the Fed’s willingness to help lend oil and gas companies as one way to boost economic activity in the economic downturn.
“The decisions the Fed makes on our behalf should foster a strong economy with more jobs in the leading industries – not in supporting and enriching the dead,” Raskin wrote, referring to oil and gas suppliers.
On Thursday, Senate Pat Toomey, Republican head of the Senate Banking Committee, criticized Raskin for “strongly advocating for the Fed to divide the headquarters by rejecting the illegal role.”
Raskin married Rep. Jamie Raskin, a free Maryland Democrat who made a significant appearance as a member of the House Judiciary Committee when he brought charges against President Donald Trump.
If confirmed, Cook, along with Jefferson, could be the fourth and fifth Black members of the Fed’s Board of Governors in his 108-year history. He has been a professor of economics and international relations at Michigan State since 2005. He was also an economist at the White House. Council of Economic Advisers from 2011 to 2012 and was an advisor to the Biden-Harris transformation team at the Fed and bank. laws governing the country.
Cook is well-known for his research into various forms of violence in recent African-American countries. The 2013 paper he wrote confirmed that racist violence, violations of the law and threats to human security, reduced patent payments to the American people by 15% annually between 1882 and 1940 – losses that reintroduced the US economy.
In an interview in October, Cook said that despite the encouragement of prominent economists such as Milton Friedman and George Akerlof, he had struggled for years to get the paper published. Major financial journals, he said, often do not deal with “patents, or financial history, or anything related to African-American people.”
Cook has also been the representative of black women in economics, a profession that is very different from other sciences. In 2019, she also published an article in The New York Times that stated that “the economy is not a welcoming or supportive force for women” and “strongly opposed to black women.”
To address these issues, Cook has spent time training young black women economics, directing a summer program run by the American Economic Association, and won a scholarship award in 2019.
Jefferson, who grew up in a working-class family in Washington, DC, according to a interview with the American Economic Association, has been conducting its research on poverty and financial policy. In a 2005 paper, he emphasized that the economic benefits of warming as a result of reducing unemployment among low-wage workers exceeded the price, as well as the risk that companies would use machines as they began to decline.
AP Secretary Josh Josh Boak in Washington contributed to the story.