The three economists with whom the president Joe Biden wants to bring diversity to the powerful United States Federal Reserve (Fed) this Thursday drew criticism before the banking committee of the Senatewho will decide on his appointment.
Lisa Cookformer economic adviser to Barack Obamawould the first African-American woman governor at the Fed, as the Senate confirms her nomination.
During the hearing with the other two candidates before the Senate Banking Committee, he was criticized for his minor economic experience to join the coveted council of governors of the Fed (central bank of the United States).
His journey, although very impressive (…), does not seem related to the mission of the Federal Reserve“, the Republican senator stressed Bill Hagerty.
“I know I was the target of anonymous attacks and liars (…) I have a doctorate in economics of UC Berkeley. I am a specialist in macroeconomics and in international economyCook, who is currently a professor at Michigan State University, responded.
But it was Sarah Bloom Raskinformer number two in the Treasury during the Obama administration and elected by Biden for the key position of Fed Vice President in charge of banking supervision, which concentrated most of the criticism from Republican side.
The opposition approves the position of the nominee on bank regulation and the climate changesays fear of sacred independence from the Fed
“I’m very concerned about the Fed being used as a weapon against industries like Petroleum and from gas“, emphasizes Senator Hagerty, reflecting the concerns raised by the U.S. Chamber of Commerce in a letter addressed to senators.
Raskin, who is also the wife of a Democratic representative, sought to reassure the committee. She stressed that “the Federal Reserve does not exist to benefit certain sectors” and “should not choose winners or losers . “
“Hyperventilating”
The third economist Biden has chosen to join the Fed’s board of governors is Philip Jeffersonteacher and administrator Davidson College of North Carolina. He would become the fourth African-American governor since that institution’s creation in 1913, and his nomination is more consensual.
The White House wants to take advantage of the three vacancies to be filled among the seven posts on the Fed’s board of governors to fulfill Biden’s promise to bring ‘a long-awaited diversity’ to the institution.
The Senate committee plans to vote on the appointments on February 15. If confirmed, the majority of members of the Fed’s board of directors will be women for the first time in history, and most of them will be appointed by a Democratic president.
“There was hyperventilation regarding these nominees,” the Democratic senator ironically said. Sherrod Brownchairman of the banking commission, regrets opinions “based on exaggeration and false statements rather than on actual dossier and experience.”
The MP in particular denounced the criticism leveled at Lisa Cook by “the far-right blogosphere for discrediting a highly respected economist with a solid monetary policy experience“.
to fight inflation
But support also came from the Republican side. According to Kevin Hassetta relevant economist of the administration of Donald Trumpthe nominee Philip Jefferson he is “exactly the kind of economist who should be with the Fed in this difficult time.”
Lisa Cook and Philip Jefferson are “exceptionally qualified,” the National Economic Associationof which both were presidents.
For these two economists, the immediate priority is to combat inflation, which is the highest in 40 years.
“Our most important task is to fight inflation. A high inflation is a serious threat to the long and sustained expansion that (…) is raising the standard of living for all Americans, ”Lisa Cook emphasized during the trial.
“What we have observed in our history is that (…) the longer the expansion, the wider it tends to be, and the more people have access to work and prosperity in all. socio-economic groups“, explains Philip Jefferson.
Joe Biden also returned to nominate the president of the institution Jerome Powell for a second term of four years, and as Vice-President elected the Democratic governor Lael Brainard.
Reference-www.eleconomista.com.mx