Jefferson are the proven leaders we need at this critical moment. “It’s been almost a decade since we’ve had all seven board members. And they’re also touting her credentials in other areas, such as cybersecurity, to parry Republican attacks.įIRST IN MM: BROWN’S OPENING STATEMENT - Senate Banking Chair Sherrod Brown (D-Ohio) plans to emphasize today the importance of having a Fed board at full strength, according to excerpts of his opening statement obtained by MM: Taxpayer watchdogs said opponents have distorted Raskin’s statements, particularly her criticism of the Fed’s pandemic lending programs, which stemmed from concerns that the Fed was making risky taxpayer investments. And they have slammed Raskin as an ideologue who would halt cash flows to coal, oil and gas firms, though such an extreme move is highly unlikely, particularly in the near term. Republicans also question whether the Fed or banks could adequately model climate risk scenarios. ![]() Raskin “wrote that these companies will be worthless in the near future, which would be news to anyone who bought Exxon Mobil stock in March.” “Jay Powell has never talked about allocating capital and steering capital away from the oil and gas sector,” a GOP Banking Committee aide told POLITICO. Powell said at his confirmation hearing last month that the Fed’s climate role is “limited.” “There’s been a lot of this being politicized, but really the Fed is already moving in this direction,” said Sarah Dougherty, a former Fed economist who now directs the Natural Resources Defense Council’s Green Finance Center.īut Republicans and some Democrats say Powell has been more muted on climate than they assume Raskin would be indeed, the Fed chief has been the target of withering criticism by activists for not doing more. is a laggard on preparing for climate risk compared with the European Union, said Ben Cushing, campaign manager with the Sierra Club’s fossil-free finance program. Under Powell, the Fed has joined the Network for the Greening of the Financial System, a coalition of central banks assessing climate risks, and is in the process of developing a framework for making banks game out climate-related risk scenarios.Īnd, in fact, the U.S. Raskin has joined other financial and climate experts in calling on banks to prepare for climate-related shocks and has encouraged regulators to consider ways to support a “rapid and just green transition.” The dangers most closely watched by the Fed include not only physical risks posed by severe weather but also the possibility that global policies enacted to curb greenhouse gases could hurt financial institutions with sizable fossil fuel investments.Įnvironmentalists say Raskin is generally aligned with Powell and former vice chair Randal Quarles, both Trump appointees. Here’s more from POLITICO climate reporter Zack Colman on Raskin: Thursday’s hearing will be a chance for Raskin and Cook to clarify their views on how much power the Fed has, for example, to steer banks away from fossil fuel investments or address racial disparities in the economy. Bill Hagerty (R-Tenn.) told our Victoria Guida on Tuesday. “I’m very concerned about any candidate that would go beyond what I see as the limited mandate of the Federal Reserve,” Sen. But her defenders say she’s not the radical Republicans portray, noting the Fed has already started moving in this direction under Powell. The crux of the issue is, how far would they go?Īctivists who have bemoaned what they see as Chair Jay Powell’s baby steps on climate have said that Raskin would take bigger steps - leaps maybe - to incorporate climate risks into the Fed’s work. Raskin and Cook’s supporters insist this is nonsense and argue that the two candidates would bring a different and urgent perspective on the Fed’s role in advancing economic opportunity and stability. Republicans have blasted two of the president’s nominees, Sarah Bloom Raskin and Lisa Cook, as activists who would stretch and push the bounds of the Fed’s congressional mandate to advance the administration’s social and environmental agenda. ![]() President Joe Biden’s three latest picks for the Federal Reserve board are headed to Capitol Hill today for their nomination hearing, where the theme is likely to be an existential one: What is the job of the central bank? The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Editor’s Note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m.
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