(Reuters) -Sarah Bloom Raskin, President Joe Biden’s nominee for the Federal Reserve top bank regulator, resigned Tuesday, just one day after a prominent Democratic senator and moderate Republicans stated they wouldn’t back her. This leaves no way to confirm by the Senate.

“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,” Biden said in a statement.

Raskin was the most controversial of Biden’s five nominations for the Fed’s Board of Governors. This generated strong opposition from Republicans, who claimed she would use her post to direct the Fed towards oversight policies that penalize banks lending to fossil fuel corporations.

Progressive Democrats like Senator Elizabeth Warren, Massachusetts had supported Raskin. They pushed Biden for someone to enforce stricter bank oversight following regulatory rollbacks by Randal Quarles, the former supervision czar.

With her withdrawal, the Senate can now act on four other nominees. These include Jerome Powell to serve a second term at the Central Bank’s Chair.

Republicans from the Senate Banking Committee (which reviews nominations for the Fed) had obstructed progress by refusing voting. This was due to their opposition to Raskin’s appointment as vice chair of supervision.

Sherrod Brown was the panel’s chair. He said that after Raskin’s withdrawal, he would continue to hold a vote for the remaining seven members of the board. Lael Brainard (an existing Fed governor) will be vice-chair of the central bank, while economists Philip Jefferson, Lisa Cook, will fill vacant seats.

Raskin needed to win the support of all members of her party in order to be confirmed to the 50-50 Senate, which Democrats only control due to Vice President Kamala Harir’s tiebreaking role as its president.

The nomination of Senator Joe Manchin, a West Virginia Republican Democrat and a conservative Democrat who hails from a state with one of the largest coal-producing states in America, was effectively canceled when he announced that he opposed her nomination. He was followed by moderate Republicans saying “Nos.”

Raskin stated in her resignation letter that “their point of contention” was “my frank public conversation about climate change and its economic costs.” She wrote that it is not a radical or novel position to include climate change on the Fed’s list of risk factors to be considered to maintain financial stability and economic stability.

Republicans supported this argument, as Senator Republican leader Mitch McConnell demanded Tuesday from the White House that Raskin be replaced by a “suitable candidate” to become Fed Vice Chair of Supervision.

Biden’s government must now decide whether it will pivot to a moderate job, or leave the position open.

Pat Toomey was the Senate Banking Committee’s top Republican, and an architect behind Raskin’s defeat. On Tuesday, Toomey said that Raskin’s defeat is a “message to financial regulators” “that their job is not to allocate capital nor stray away from their mission to pursue political or extraneous campaigns.”

Just as the Fed was preparing for a major shift in its monetary policy direction in face of rising inflation and a conflict in Ukraine, the political fight over the nomination occurred.

Fed officials headed by Powell, who is still the chief of the central bank under the title “Chair pro Tempore”, are likely to increase interest rates this week for the first-time since 2018. They could also discuss their plans to reduce the Fed’s almost $9 trillion asset portfolio.

This will end a two-year period of exceptional accommodation that was put in place to protect the economy against the COVID-19 pandemic. It began just two years ago.

The New Yorker reported Raskin having sent a withdrawal letter to the White House.