After delays caused by Republican legislators, the United States Senate will vote to approve President Joe Biden’s nominations for Federal Reserve.
The Senate voted 50 to 49 on Tuesday to move economist Lisa Cook’s nomination as governor of the Federal Reserve System from the Banking Committee towards a final confirmation vote. However, it is not clear when the government body will consider the matter. The Senate will vote on Jerome Powell, the Fed’s pro-tempore chair, and Lael Brainard, vice-chair, and economist Philip Jefferson, Fed governor.
After a boycott by the Senate Banking Committee Republicans, who expressed concern about Sarah Bloom Raskin, the Fed vice-chair for supervision, all four Biden nominations for the central banking position were rescheduled for February. According to reports, Senator Pat Toomey, a ranking member, said that at the time, Republican members would support Powell Brainard Jefferson, Jefferson, and Cook — but not Raskin.
The Fed vice chair for supervision and prospective Fed vice chair with supervision, Elizabeth Fedora, withdrew her name on March 15th. She cited “relentless attacks from special interests” as the reason. Democratic Senator Joe Manchin, who is also Republican, said he wouldn’t support Raskin’s nomination. A vote is only possible if Democrats hold a slim majority of the Senate. Therefore, it is important to have all members of the party behind a candidate.
Toomey asked lawmakers to oppose Cook’s nomination in the Senate. He cited concerns about inflation in the United States and suggested that they also vote against Cook’s nomination. Toomey, a Republican senator, claimed Cook could display “extreme left-wing political advocacy” at the Federal Reserve and “nearly zero experience with monetary policy.”
Lisa Cook’s track record suggests that she will likely inject more political bias into @federalreserve work at a time when hyper-focus is on inflation and adhering to the Fed’s dual mandate are at their most critical. I urge my colleagues not to support her nomination. pic.twitter.com/TihNFdhhVg
— Senator Pat Toomey (@SenToomey), March 29, 2022
Sherrod Brown, chair of the Senate Banking Committee, stated that it was crucial for lawmakers to confirm Biden’s picks immediately in order to fight inflation.
“Despite her wide support, a small but vocal minority have incorrectly claimed Lisa Cook does not meet the standards required for this position — standards which only seem to apply to certain nominees.”
The U.S. government could change the way it views crypto and blockchain by changing the leadership of one top financial regulator. The Federal Open Market Committee approved rules in February that would prohibit Fed officials from buying and holding cryptocurrency. The House could also consider legislation to ban their colleagues trading stocks, a law that could potentially be extended to digital assets.
Related: Powers on… The Fed endorses cryptocurrency — Sort of
After Tuesday’s vote, the nominations for Jefferson, Jefferson, and Cook will likely be accepted. If they get more than 50 votes in Senate, Vice President Kamala Harir is able to break a tie if necessary. In that case, Powell and Brainard will serve as Fed board leadership until 2026. Cook and Jefferson would be Fed governors for 14-year terms.