Sarah Bloom Raskin has withdrawn from consideration to be a nominee for the Federal Reserve Board of Governors.
Raskin submitted her withdrawal in a letter to President Joe Biden.
Biden nominated Raskin in January for the position of vice chair of supervision at the Fed, a role that would have made her a powerful regulator in the banking world.
But Raskin, a former Fed governor who was deputy Treasury secretary during the Obama administration, faced stiff opposition in the Senate based on her stance on climate change and fear that she could discourage banks from lending to fossil fuel companies.
In her letter to Biden withdrawing her nomination, which was shared with CNN, she wrote that many “in and outside the Senate are unwilling to acknowledge the economic complications of climate change and the toll it has placed, and will continue to place, on Americans. ”
“It was — and is — my considered view that the perils of climate change must be added to the list of serious risks that the Federal Reserve considers as it works to ensure the stability and resiliency of our economy and financial system,” she added. “This is not a novel or radical position.”
The decision to withdraw comes after it became clear she would not have the votes to be confirmed by the US Senate.
Sen. Joe Manchin, a West Virginia Democrat, announced his opposition to the nomination on Monday, setting off a White House scramble to find Republican support in a 50-50 Senate.
None materialized, rendering her nomination all but dead, even as White House officials continued to support the selection.
Raskin’s withdrawal was first reported by the New Yorker.
In a statement on Tuesday, Biden said Raskin was qualified for the job and blamed partisan politics and attacks from special interests for her inability to gain support.
“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,” Biden 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.”
Opponents, including Manchin, Senate Republicans and the US Chamber of Commerce, argued that Raskin’s promotion of green energy, renewable resources and environmental issues threatened to keep gas prices high – particularly at a time when the Russia-Ukraine conflict is sending fuel prices through the roof.
On Monday, Manchin — who is not a member of the Senate Banking Committee that votes on Fed nominations — said Raskin’s “previous public statements have failed to satisfactorily address my concerns about the critical importance of financing an all-of-the-above energy policy to meet our nation’s critical energy needs.”
Senate Republicans boycotted a vote last month in protest of Raskin’s nomination, halting a slate of pending nominees for the central bank, including the renomination of Fed Chair Jerome Powell.
Raskin’s candidacy, however, was hailed by progressives.
Biden has pledged to make the Fed more diverse in terms of both its gender and racial makeup and urged the Senate Banking Committee to confirm his other nominees, Philip Jefferson and Lisa Cook – who would be the first Black woman to serve on the Fed’s board.
“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,” Biden said.