The collapse of Sarah Bloom Raskin’s bid to become the Federal Reserve’s top banking agent shows how deeply entrenched the oil industry’s allies in Congress are against weaving climate change into financial oversight.
Fast overtaking: Raskin withdrew her nomination Tuesday, a day after Senator Joe Manchin (DW.Va) announced her opposition to her nomination as vice chairman of the Federal Reserve, effectively dooming her chances amid unified GOP opposition.
Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for free
Why it matters: The stiff headwinds this nomination faces demonstrates how much resistance there is among the fossil fuel industry and its allies in Congress to integrate climate change risk analysis into the work of the country’s top financial regulator.
The big picture: Progressives and climate activists supported Raskin’s nomination because they were eager to see someone with extensive knowledge of the ways in which climate change, through extreme weather and climate events, related geopolitical upheavals and other impacts, poses economic risks.
The Intrigue: The unprovoked Russian invasion of Ukraine also hampered the Raskin nomination, as it led to gas prices skyrocketing, underscoring the importance of relying more on domestically produced energy.
-
Manchin has called for more oil and gas drilling in the US in response to the war.
-
In Raskin, Manchin saw an obstacle to that vision.
-
So did many oil and gas companies and their trading groups, who rebelled against her appointment while environmental groups supported her.
Zoom in: In announcing his opposition to Raskin’s appointment, Manchin pointed to her climate views, stating: “Her previous public statements have failed to satisfactorily address my concerns about the critical importance of financing a comprehensive energy policy. to meet critical energy needs.”
-
Her writings as an academic show that she believes not only that the Fed should ensure that banks are prepared for the impacts of climate change, but also that banks and their regulators should play a positive role in a clean energy transition by eliminating financing. extracting fossil fuels. fuels and towards clean energy.
-
She played the Fed’s role in choosing energy winners and losers during her January testimony before the Senate Banking Committee, though ranking member Pat Toomey (R-Pa.) did not accept the reversal, dismissing it as a “confirmation conversion.”
Between the lines: Assuming Raskin is forced to pull out, the Banking Committee Republicans’ tactics of voting to boycott Biden’s recent Fed candidates will have paid off.
Editor’s Note: This story has been updated with news that Raskin has withdrawn her nomination.
Do you like this article? Get more out of Axios and subscribe to Axios Markets for free.
