GOP Senators Dig In on Boycott of Raskin Fed Vote

(Bloomberg) -- Republicans on the Senate Banking Committee sent a letter to President Joe Biden Thursday standing firm in their boycott of Sarah Bloom Raskin's nomination for Fed vice chair of supervision because of what they call a “lack of candor” in her answers to the committee.

“Without greater insight into Ms. Raskin's past activities, we cannot, in good faith, support the advancement of her nomination process,” the Banking Committee Republicans wrote.

Republicans have insisted Raskin and the Fed provide more answers about her role as a director at fintech firm Reserve Trust in seeking a Fed master account. Raskin has said she does not recall the episode.

Republicans on the Banking Committee have refused to show up to vote on the nominee, denying the panel the quorum it needs under Senate rules to move nominees to the floor for a vote.

Democrats and the Biden administration have refused to split up the nominations and have defended Raskin. A White House official said Thursday that Raskin and Biden's other Fed nominees are well qualified and that the central bank needs a full board of governors in place, an argument echoed by Banking Chair Sherrod Brown.

“In a time of deep economic uncertainty – where democracies across the world are threatened by authoritarian strongmen – we must ensure the Fed is operating at full capacity,” Brown said in prepared remarks for a hearing Thursday with Fed Chair Jerome Powell.

Biden's four other Fed nominees, including the renomination of Powell as chair, have been caught in the crossfire, as Brown refuses to move the other nominees without a vote on Raskin.

Republicans also oppose Raskin because of her views on mitigating climate-related financial risks, but say that's not the reason for holding up her nomination.

“Our actions to deny a quorum were not the result of Ms. Raskin's radical public comments and beliefs about using federal financial supervisory powers to advance climate change policy,” the committee's 12 Republicans wrote.