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Senate panel to vote on advancing Biden’s Fed picks; Raskin under microscope -Breaking

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© Reuters. FILE PHOTO – The Federal Reserve Headquarters in Washington, Sept. 16, 2015. REUTERS/Kevin Lamarque/File photo

Lindsay and Pete Schroeder (NYSE:) Dunsmuir

(Reuters) – A crucial U.S. Senate panel will vote Tuesday on President Joe Biden’s nominations for the Federal Reserve chair. Sarah Bloom Raskin is the Wall Street regulator and Jerome Powell has been renominated as chairman.

Raskin was a member of the Fed Board of Governors but is now a U.S Treasury official. Some analysts expect that the panel of 24 will be equally divided.

Raskin was attacked by Republicans for her comments about using financial rules in climate control. She has also been accused of improperly lobbying for a fintech company on which she sits. Raskin denies these accusations.

A tie vote wouldn’t end Raskin’s nomination but it might delay or complicate the path of her confirmation by full Senate. In order to pass such votes, only a simple majority would be required. The vote by the committee is set for 2:05 p.m. Eastern Standard Time (1915 GMT).

Raskin, with a tie banking panel, is likely to require the support all 50 Democratic Senators. In the case of a deadlock in the committee, Democratic Senator Ben Ray Lujan may also be recovering from a stroke.

“Sarah Bloom Raskin’s nomination faces the stiffest headwinds of the five Fed nominees, and it will come down to a handful of centrist voters, but we view the odds of confirmation as modestly better than a coin flip right now,” said Isaac Boltansky, director of policy research for brokerage BTIG.

Raskin will be Washington’s top bank regulator if he is confirmed. He would oversee an ambitious portfolio.

These are her key projects: building tools for assessing financial risks due to climate change; reverse Wall Street cuts granted by Randal Quarles before her and creating new regulations for fair lending and fintechs.

Progressive Democrats have praised Raskin for her expertise and experience, having held high-ranking positions at the Treasury under President Barack Obama. The Senate Banking Committee’s moderate Democrats also supported Raskin during her confirmation hearing. Jon Tester from Montana and Mark Warner both spoke in support of Raskin.

OTHER NOMINEES

Additionally, the committee will vote on four additional nominees for Fed slots: Powell and current Fed Governor Lael brainard as well as proposed newcomers Lisa Cook, Philip Jefferson, and proposed Powell.

Powell is a Republican appointed by Trump to serve a fourth term as Fed Chair. He has broad bipartisan support. While his first term was over, Powell remains the Fed chair until his confirmation.

Jefferson, Cook, Brainard and Cook used their confirmation hearings for Powell’s monetary policy agenda to show their support. This will see Powell likely increase interest rates at their March 15-16 policy meeting. There will be multiple hikes following in an attempt to reduce inflation to levels that were under control since the 1980s.

Obama appointed Brainard, a Democrat, as Fed governor in 2014. It seems that her nomination for vice-chair position will be approved. This would allow Powell to become Powell’s deputy, despite Republican concerns about how she would advocate for stronger climate change policies at the central bank.

Cook is an economist from Michigan State University. Jefferson is an economist currently serving as dean of faculty at Davidson College, North Carolina.

The committee expects all Democrats to support Jefferson and Cook, while Senator John Kennedy (at least one Republican) indicated that he would also vote for them.

Cook and Jefferson (both Black) would become the Fed Board’s governors, making it one of the most diverse central banks in its 108-year history.

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