GOP on Fed picks: Open to Brainard, wary of Raskin

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Some Senate Republicans are open to voting for President Biden’s candidate Lyle Brainard to serve as Federal Reserve deputy chairman, but Sarah Bloom is more concerned about Ruskin.

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Why this matters: GOP support for Brainard, a Fed governor whose confirmation hearing will take place on Thursday, would all but assure his confirmation. But questions about Biden’s potential choice Ruskin to serve as the Fed’s top bank regulator raise doubts about him.

What are they saying: “A president has to be able to bring his team. [Brainard] Mike Rounds (RSD), a member of the Senate Banking Committee, told Nerdshala.

  • “I bow down to support a nominee that the president has requested unless there is a reason not to,” he said, citing some concerns about his environmental status.
  • Susan Collins (R-Main) said, “I’m inclined to support her, but I won’t make a final decision until I have a chance to review the hearing transcript.”
  • While not on the committee, Collins is still one of four Republicans in the Senate who voted to confirm Brainard in 2012 by a vote of 61-31.
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big picture: Questions about inflation, which rose to 7% in Wednesday’s CPI report, dominated Fed Chair Jay Powell’s own confirmation hearing on Tuesday. He will also work at Brainard’s.

  • According to prepared remarks, reducing inflation is “the most important task,” Brainard will tell the committee on Thursday.
  • “Inflation is very high, and working people across the country are worried about how far their paychecks will go,” she would say.
  • Republicans also plan to pressure Brainard on how she will use the Fed to encourage carbon-neutral policies.

go in: When Biden reappointed Powell for a second term in November, he picked him over Brainard – opting to elevate him to the No. Both nominations require Senate confirmation.

  • Leading up to Powell’s decision, Republicans publicly warned Biden against electing Brainard to the top post, citing his more aggressive stance on using the Fed to fight climate change.
  • But the GOP’s concerns about using the Fed to pursue more carbon-neutral policies have shifted toward Ruskin if he is to be seated as vice president for bank supervision.
  • “I worry about whether [Brainard] Pat Tommy (R-Pa.), ranking member of the banking committee, told Nerdshala.
  • “We know for certain that Sarah Bloom Ruskin advocates for using the Fed to allocate credit away from the fossil fuel industry,” he said. “It’s extremely disturbing.”
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Flashback: Ruskin, the former Fed governor and deputy Treasury secretary to President Obama, was twice confirmed by the Senate via a voice vote, indicating there was no serious opposition.

  • Republicans are holding onto his recent articles, According to Bloomberg.
  • She objected to Allowing oil, gas and coal companies access to certain emergency loan programs established in 2020 in response to the pandemic.
  • Ruskin’s aides say Republicans are distorting his position.

Bottom-line: Centrist Democrats like Sen. John Tester (D-Mont.) enlisted the help of Biden’s nominee Soule Omarova to head the Office of the Comptroller of the Currency.

  • The examiner tells Nerdshala that he does not anticipate any problems with Brainard.
  • “I feel positive at the moment,” said the senator.

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