US President Joe Biden’s decision to appoint Sarah Bloom Raskin to lead the regulation and supervision of the Federal Reserve will put a progressive in the most powerful role of watchdog over Wall Street banks.
The White House said on Friday that Raskin, a former Fed director and Treasury official under former President Barack Obama, will replace Randal Quarles – named Fed deputy chairman for oversight by the former Republican president. Donald Trump in 2017.
Quarles resigned in October and left the central bank at the end of December last year.
The banking oversight role is the most significant of several Fed board seats available for Biden to fill, giving the Democrat an opportunity to guide the direction of both Wall Street oversight and monetary policy. over the next few years.
Biden also selected economists Lisa Cook and Philip Jefferson to help compose the Fed’s board.
Raskin is expected to take a much tougher stance on Wall Street than Quarles, who angered progressives with a pro-banking approach that included easing several rules introduced after the 2007-2009 global financial crisis.
She would guide monetary policy on thorny issues such as climate change financial risks, community lending rules and fintechs, and would likely review several of Quarles’ rule changes, which cover speculative bank investing, derivatives trading, liquidity and capital. .
Raskin has yet to have the nomination confirmed by a Senate narrowly divided between Democrats and Republicans, where he could face highly partisan reception. Raskin has been confirmed twice before, but those votes predated the current partisan rancor that permeates Capitol Hill.
Reference: CNN Brasil