Sarah Bloom Raskin Nomination at Risk After Manchin Rejects Biden Fed Pick

Sarah Bloom Raskin's nomination to the Federal Reserve's Board of Governors is at risk after Senator Joe Manchin said he is "unable to support" her on Monday.

President Joe Biden nominated Raskin—who served as a deputy Treasury secretary on the board from 2010 to 2014—to serve as the board's vice chair of supervision, but she has faced scrutiny from Republicans over remarks about climate policy, delaying a confirmation vote.

On Monday, Manchin—a centrist Democrat from West Virginia—joined GOP senators in opposing her nomination, according to the Associated Press, pointing to her previous statements he says "failed to satisfactorily address" his concerns about the financing of al "all-of-the-above" energy policy.

Raskin said she would use her position to discourage banks from lending to fossil fuel companies to help fight against climate change. Manchin represents West Virginia, where the coal industry has long wielded substantial political influence.

"The Federal Board is not an institution that should politicize its critical decisions," he wrote. "This is a 10-year term to perhaps the most important body that is tasked with ensuring the stability of the American economy."

He added, "The time has come for the Federal Reserve Board to return to its defining principles and dual mandate of controlling inflation by ensuring stable prices and maximum employment. I will not support any future nominee that does not respect these critical priorities."

Given the senate's 50-50 split between Democrats and Republicans, Manchin's opposition could sink her nomination completely. At least one Republican senator would have to vote to confirm her—with Vice President Kamala Harris serving as a tie-breaking vote.

No Republican senators have indicated they would vote in support of Raskin, but a White House spokesperson wrote in a statement to Newsweek the Biden administration is "working to line up bipartisan support" so she can be confirmed.

"Sarah Bloom Raskin is one of the most qualified people to have ever been nominated for the Federal Reserve Board of Governors—she previously served on the Board and she served as second-in-command at Treasury, both positions where she earned bipartisan Senate confirmation," the statement said.

Biden has also nominated Chair Jerome Powell to serve a second term and Lael Brainard to serve as the vice chair. He also nominated Lisa Cook and Phillip Jefferson to serve on the board. Republicans boycotting a vote on Raskin has also meant a delay in confirmation votes for Biden's other nominees.

Manchin is a key vote among Senate Democrats, as he represents a solidly Republican state that backed former President Donald Trump by nearly 40 percentage points in 2020.

Raskin is not the first of Biden's nominees Manchin has opposed. He previously declined to support Neera Tanden to lead the Office of Management and Budget in February 2021, citing overly partisan statements. His refusal to do so ended her nomination, as no Republicans voted in her support. He has also successfully blocked key elements of Biden's agenda, including the broad social spending bill known as Build Back Better.

Newsweek reached out to the White House for comment Monday afternoon. This story will be updated with any response.

Updated 03/14/2022 4:51 p.m. ET with statement from the White House

Joe Manchin Opposing Sarah Bloom Raskin
Sarah Bloom Raskin’s nomination to the Federal Reserve Board is at risk after Senator Joe Manchin said on March 14, 2022, he is “unable to support” her. Above, Raskin is seen in Washington, D.C., February 3, 2022. Bill Clark-Pool/Getty Images