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Sarah Bloom Raskin withdraws nomination to Federal Reserve board

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Washington — Sarah Bloom Raskin has withdrawn her nomination to a key position on the Federal Reserve Board of Governors, President Biden announced Tuesday afternoon. 

Bloomberg first reported her withdrawal, which came the day after Democratic Senator Joe Manchin said he will not support her confirmation. All 50 Democrats needed to vote for her, or she needed to garner Republican support. Raskin's support for having the Fed consider the threat climate change poses in its regulation of banks was a source of criticism for Republicans. 

"Despite her readiness — and despite having been confirmed by the Senate with broad, bipartisan support twice in the past — Sarah was subject to baseless attacks from industry and conservative interest groups," the president said. "Unfortunately, Senate Republicans are more focused on amplifying these false claims and protecting special interests than taking important steps toward addressing inflation and lowering costs for the American people. I am grateful for Sarah's service to our country and for her willingness to serve again, and I look forward to her future contributions to our country."

The White House said as recently as Monday that they were still pushing for Raskin to be confirmed, insisting that Republicans would need to step up. 

"She is one of the most qualified individuals to ever be nominated to this position," White House press secretary Jen Psaki said Monday about Raskin. "And so where we are now is, our focus is on continuing to work with Chairman Brown to garner bipartisan support."

Sarah Bloom Raskin speaks during the Senate Banking, Housing and Urban Affairs Committee confirmation hearing on February 3, 2022. BILL CLARK/POOL/AFP via Getty Images

Mr. Biden urged the Senate to approve other Fed nominees whose confirmation process had been held up along with Raskin's. 

"I urge the Senate Banking Committee to move swiftly to confirm the four eminently qualified nominees for the Board of Governors — Jerome Powell, Lael Brainard, Philip Jefferson, and Lisa Cook — who are still waiting for an up-or-down vote," Mr. Biden said. "This group has the experience, judgment, and talent necessary to lead the Federal Reserve at this critical moment in our economic recovery, and the Senate should move their nominations forward."

Mr. Biden nominated Raskin to serve as the Fed's vice chair for supervision, but his replacement nomination remains unclear at this point. Also unclear is what will happen to two other key Fed nominees the president made, which had been held up as Raskin's nomination languished in the Senate. 

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