Joe Manchin joins Republicans and all but tanks Biden's nominee for the top bank regulator at the Fed
Sen. Manchin came out against Sarah Bloom Raskin's nomination as the Fed's vice chair of supervision.
The GOP has already blocked Raskin's nomination from moving out of committee deliberations.
Without Manchin, Democrats have little chance of confirming Raskin to the central bank.
Sarah Bloom Raskin, President Joe Biden's choice for the top banking regulator at the Fed, already faced a steep uphill battle for confirmation. Sen. Joe Manchin might've doomed her chances for good.
The senator from West Virginia came out against Raskin's nomination to be Federal Reserve vice chair of supervision on Monday, placing a new hurdle in front of the confirmation process. Raskin needs support from at least 50 senators to be confirmed to the position, and with the legislative body split along party lines, Manchin's decision forces Democrats to either change his mind or look to the GOP for support.
Manchin said Monday that the Fed needs experts focused on soaring inflation and energy costs, and Raskin's prior statements "failed to satisfactorily address my concerns." The senator cited his worries around financing "an all-of-the-above energy policy" to meet the country's energy needs, adding it's "imperative" that the Fed's ranks avoid "any hint of partisanship."
"The time has come for the Federal Reserve Board to return to its defining principles and dual mandate of controlling inflation by ensuring stable prices and maximum employment," Manchin said in a statement. "I will not support any future nominee that does not respect these critical priorities."
Biden tapped Raskin to serve as the central bank's top financial-sector regulator in January as part of a collection of Fed nominations. Raskin had already served as the deputy Treasury secretary and as a governor on the central bank's board, and the vice-chair position would give her tremendous influence over the banking sector as the post-pandemic economy takes shape.
Raskin's confirmation had been frozen for some weeks in the Senate Banking Committee. Republican committee members led by Sen. Pat Toomey of Pennsylvania launched a boycott to block Raskin's nomination from even getting a committee vote. From there, her nomination would have reached the Senate floor.
Manchin and the GOP share the same concerns with Biden's pick. Raskin's prior comments on climate policy have caught flak from conservative lawmakers, with many opposing her claims that climate change is an existential risk to financial stability. While the Fed has said that climate change poses a risk to the financial system, it's held off on letting climate issues influence policy. Republican members of the Banking Committee worry Raskin will damage the Fed's independence and steer it down a partisan path.
Republicans have said they're open to voting on Biden's other Fed nominations, which include Jerome Powell for his second term as Fed chair, Lael Brainard as vice chair, and Lisa Cook and Philip Jefferson as Fed governors. Manchin offered a similar deal last week, saying Democrats should consider the GOP offer.
"If they're willing to move four out of five? Take it and run with it. It's a win," Manchin said, according to Politico. "I'll take a win any time I get it."
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