Joe Biden to appoint Sarah Bloom Raskin as Fed vice president

(Washington) Joe Biden will appoint as vice-president of the American central bank (Fed) in charge of banking regulation, Sarah Bloom Raskin, former number two of the Treasury and who calls for more concern about climate change, according to the Wall Street Journal.

Sarah Bloom Raskin was chosen by the US president, according to information from the Wall Street Journal who quotes the White House, to replace in this key post Randal Quarles, who had been appointed by Donald Trump and resigned in December from his post as governor of the Fed, after the expiration of his mandate as vice-president.

Contacted by AFP, the White House did not confirm this information Thursday evening.

Mme Raskin, a law professor at Duke University and wife of House Democrat elected official Jamie Raskin, was a former Fed governor. She was also appointed by former President Barack Obama in 2010, at the same time as Treasury Secretary and former Fed President Janet Yellen.

This choice is a signal sent to the left wing of the Democratic Party, which had criticized the current president, Jerome Powell, for not having done enough on the climate front. The appointment of Mme Bloom Raskin will need to be confirmed by the Senate.

Joe Biden has re-elected Jerome Powell for a second term at the helm of the Fed. He offered the number two place to the institution’s only Democratic governor, Lael Brainard, in favor of strict banking and financial regulations, and taking into account the financial risks associated with climate change.

In addition, the American president plans to appoint, for the last two Fed governor positions to be filled, Lisa Cook, professor of economics and international relations at Michigan State University, and Philip Jefferson, professor and administrator of Davidson College in North Carolina, adds the Wall Street Journal.

The appointment of these two black economists should allow the White House to keep its commitment to bring more diversity to the Fed.

Both had taken a stand to call on the Fed to take a stronger stance in regulating big banks and a bolder approach to the financial risks posed by climate change.

Joe Biden had five positions to fill at the Fed, an opportunity to reshape the world’s most powerful central bank.

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