Sarah Bloom Raskin withdrew her nomination to become vice chair of the Federal Reserve on Tuesday, the White House confirmed.
Why it matters: Raskin's nomination was effectively set to fail after Sen. Joe Manchin (D-W.Va.) announced his opposition on Monday. The setback reflects resistance to integrating climate change risk analysis into the U.S.'s top financial regulatory institution, Axios' Andrew Freedman writes.
What she's saying: Raskin, who has served as a governor on the Fed board as well as deputy secretary of the Treasury, wrote in her letter that the opposition to her nomination this time around is a result of an unwillingness to "acknowledge the economic complications of climate change and the toll it has placed, and will continue to place, on Americans."
- "It was — and is — my considered view that the perils of climate change must be added to the list of serious risks that the Federal Reserve considers as it works to ensure the stability and resiliency of our economy and financial system."
- "This is not a novel or radical position," she said, adding that central banks around the world have already taken action on the issue. "Any vice chair for supervision who ignored these realities — which are manifesting every day across this country — would be guilty of gross dereliction of duty."
- "These risks cannot be dismissed for political reasons, certainly at this moment when the possibilities of mitigating them still exist," she noted. "If I step away from this confirmation process, there can be no excuse left for a continued boycott of the Constitution’s 'advice and consent' process and the Senate’s corresponding refusal to attend to our nation’s real economic needs."
The New Yorker first broke the news that Raskin was removing herself from the running.
Biden confirmed the withdrawal in a statement Tuesday afternoon, noting Raskin's credentials and "unparalleled experience."
- "Despite her readiness—and despite having been confirmed by the Senate with broad, bipartisan support twice in the past—Sarah was subject to baseless attacks from industry and conservative interest groups," he said.
- "Unfortunately, Senate Republicans are more focused on amplifying these false claims and protecting special interests than taking important steps toward addressing inflation and lowering costs for the American people."
- He thanked Raskin for her willingness to serve and urged the Senate Banking Committee to move swiftly to confirm the four other nominees for the Fed's Board of Governors.
The big picture: Manchin had said that Raskin's public statements "failed to satisfactorily address my concerns about the critical importance of financing an all-of-the-above energy policy to meet our nation’s critical energy needs."
- She has advocated for banks and their regulators to shift funding away from fossil fuels and toward clean energy.
- Without Raskin in the role of vice chair, big banks won't have to worry as much about continuing to finance fossil fuel projects.
Editor's note: This post has been updated with comments from President Biden.
