March 15 (Reuters) – Sarah Bloom Raskin withdrew on Tuesday as President Joe Biden’s nominee to become the Federal Reserve’s top banking regulator, a source familiar with her decision said, and the day after a key Democratic senator and moderate Republicans said they would not support it.
The New Yorker magazine first reported that Raskin had submitted a withdrawal letter to the White House, citing “relentless attacks by special interests” in his decision to step aside.
Raskin had become the most controversial of Biden’s five candidates for the Fed’s Board of Governors, often heavily opposed early on by Republicans, who said he would use him to steer the Fed toward Supervisory policies that would penalize banks that lend to fossil fuel companies.
Raskin had been favored by progressive Democrats like Sen. Elizabeth Warren of Massachusetts, who had pushed Biden to appoint someone who would seek tougher banking supervision after regulatory rollbacks under previous supervision czar Randal Quarles.
His withdrawal now could clear the way for the Senate to act on the remaining four candidates, which include Jerome Powell for a second term as central bank chairman.
Republicans on the Senate Banking Committee, which reviews Fed appointments, are blocking progress on the nominations by refusing to help voting sessions over their objections to Raskin’s nomination as vice president of supervision.
Biden’s other nominees for the seven-member board include Lael Brainard, a current Fed governor, to be the central bank’s vice president, and economists Philip Jefferson and Lisa Cook for the open seats.
(Reporting by Dan Burns, Editing in Spanish by Manuel Farías)