Raskin, Biden’s nominee for top Fed regulatory post, quits

Sarah Bloom Raskin has withdrawn as President Joe Biden’s nominee to become the top bank regulator at the Federal Reserve.

Raskin opted out a day after a key Democratic senator and moderate Republicans said they would not back her.

Biden said Sarah was subjected to “baseless attacks from industry and conservative interest groups.”

Raskin had become the most contentious of Biden’s five nominees to the central bank’s Board of Governors.

Republicans opposed Raskin’s nomination on grounds that she would use the vice chair of supervision post to steer the Fed toward oversight policies that would penalize banks who lend to fossil fuel companies.

Raskin had been favored by progressive Democrats, such as Senator Elizabeth Warren of Massachusetts.

Raskin’s withdrawal clears the way for the Senate to act on the four remaining nominees, which include Jerome Powell for a second term as the central bank’s chair.

Republicans on the Senate Banking Committee, which reviews Fed appointments, had blocked progress on the nominations by refusing to attend voting sessions over their objections to Raskin.

The banking committee’s top Republican, Pat Toomey, said on Tuesday he and his colleagues were now ready to vote.

In a 50-50 Senate that Democrats control only by virtue of Vice President Kamala Harris’ tie-breaking position, nominees need the backing of every member of Biden’s party to gain confirmation if Republicans are united in opposition, as they appeared to be in Raskin’s case.

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