Republicans discuss Fed confirmation blockade over Sarah Bloom Raskin

The top Senate Banking Committee Republican has discussed trying to stall Sarah Bloom Raskin’s nomination as vice chair for supervision of the Federal Reserve by having GOP members sit out a vote Tuesday on sending it to the floor, according to three people familiar with the discussions.

Sen. Pat Toomey and other Republicans have questioned Raskin’s previous role as a director of Reserve Trust, a fintech company that obtained a Federal Reserve master account while Raskin was serving on its board. The Pennsylvania Republican also has criticized Raskin over her views on mitigating the financial risks of climate change.

GOP lawmakers are considering Toomey’s idea to boycott Tuesday’s committee votes on Raskin and President Joe Biden’s four other nominees, which would deny Democrats a quorum to move forward, according to the people, who asked not to be identified to talk about the private deliberations. 

Two people familiar with the discussions said Republicans hope Democrats will agree to set aside Raskin’s confirmation vote and move forward with the other nominees for now. A threat to deny a quorum is sometimes used as a negotiating tactic by the minority party.

Denying a quorum also would delay confirmation votes on Biden’s other nominees, including Jerome Powell for another term as chair, Lael Brainard as vice chair and Philip Jefferson and Lisa Cook as Fed governors. Powell and Jefferson are expected to get bipartisan backing in the committee and on the Senate floor for confirmation. Brainard and Cook also have faced Republican criticism.

Toomey on Friday accused the Fed of stonewalling his requests for information about Raskin’s role in securing approval of the master account for Reserve Trust.

Raskin said in written answers she could not remember whether she helped the company get a master account, but has agreed to stringent ethics standards in responses to the committee, including not seeking employment at a financial services company for at least four years after leaving the Fed.

A co-founder of Reserve Trust vouched for Raskin’s conduct last week.

Raskin’s previous confirmations to the Fed board and as deputy secretary of Treasury weren’t contentious, but her advocacy for the Fed and other regulators to act on climate risks has prompted opposition from the oil and gas industry.