The White House has officially named former Federal Reserve Governor Sarah Bloom Raskin to serve as the Fed’s vice president of supervision, as well as economists Lisa Cook and Philip Jefferson to fill two vacant seats on its board of governors. .
In an announcement Friday, US President Joe Biden said he had nominated Cook, an Obama-era economic adviser and Michigan State University faculty member, as well as Jefferson, a former Fed research economist, for the board of governors in addition to Raskin. Jefferson and Cook will fill two of the vacant seats in the group of seven governors, with Jerome Powell and Lael Brainard nominated to serve as president and vice president, respectively.
According to the president, all three nominees have the “experience, judgment and integrity to lead the Federal Reserve and help better rebuild our economy for working families.” He cited Jefferson and Cook’s decades of experience working on economic issues and said Raskin was “among the most qualified nominees in history” for vice president of supervision.
The vice president of supervision, unlike the vice president of the Fed’s board of governors, is a relatively new role within the government agency.. Randal Quarles was the first to serve the full four-term year from 2017 to 2021, shortly before resigning as a Fed board member in December. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, the vice president of supervision “shall develop policy recommendations to the Board regarding the supervision and regulation of depository institution holding companies and other financial firms supervised by the Board and will be in charge of the supervision and regulation of said companies.”
Many vacancies at the Federal Reserve, resulting from expiring terms and the resignation of board members, have given President Biden an opportunity to shake up the agency’s leadership. This week, his picks for Fed Chairman and Vice Chairman, Jerome Powell and Lael Brainard, respectively, testified before the Senate Banking Committee ahead of a vote by the full Senate.. If they receive more than 50 votes, Powell, Brainard and Raskin would serve as Fed board leaders until 2026, with Cook and Jefferson serving 14-year terms.
A significant change in leadership at some of the top financial regulators in the United States could have an impact on how the government looks at both cryptocurrencies and blockchain. Both the Securities and Exchange Commission and the Commodity Futures Trading Commission are likely to undergo a shakeup in 2022, with SEC commissioners Elad Roisman expected to leave this month and Allison Lee in June.. Furthermore, President Biden has not suggested that he intends to re-nominate CFTC Commissioner Dawn Stump before her term expires in April.
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