Embattled Federal Reserve pick Raskin withdraws nomination

WASHINGTON — Sarah Bloom Raskin withdrew her nomination Tuesday to a position on the Federal Reserve’s Board of Governors after a key Democrat had joined with all Senate Republicans to oppose her confirmation. The president asserted in a statement that “Sarah was subject to baseless attacks from industry and conservative interest groups.” White House press secretary Jen Psaki had reiterated Tuesday that Raskin had Biden’s “strong support.” Raskin’s nomination had been stuck in the Senate Banking Committee after Republicans last month unanimously refused to vote on it in an effort to prevent her being approved on a party-line vote. Raskin joined Reserve Trust in January 2017, after the firm had applied for a “master account” at the Fed, which would enable it to quickly transfer large sums of money without going through a bank. In her letter to Biden withdrawing from consideration, Raskin wrote, “It was — and is — my considered view that the perils of climate change must be added to the list of serious risks that the Federal Reserve considers as it works to ensure the stability and resiliency of our economy and financial system.” Chair Jerome Powell, who enjoys broad support among congressional Republicans, has taken steps to increase the Fed’s scrutiny of climate change and how it may affect the safety and soundness of banks.