During a hearing on Thursday, Senate Banking Committee Ranking Member Pat Toomey clashed with one of President Biden’s Federal Reserve nominees, hinting that she would utilize the Fed’s ability to redirect money away from the fossil fuel industry.
Toomey, R-Pa., also chastised another candidate for suspected “severe left-wing political participation,” while Democrats said GOP charges required a “suspend of common sense.” “She’s frequently, loudly, and firmly advocated for leveraging financial regulation—including the Fed—to spread capital and de-bank energy firms,” Toomey stated in his opening remarks about Biden contender Sarah Bloom Raskin.
Raskin is a contender for the position of vice president for supervision on the Federal Reserve Board of Governors. Toomey referenced Raskin’s numerous podcasts, speaking engagements, and publications in which she campaigned for such climate legislation.
Raskin was enraged by Toomey’s statements. Raskin responded to criticism from Banking Committee Chairman Sherrod Brown, D-Ohio, by saying she would stay politically impartial in her role and defended her record as a regulator.
“Regulatory activities must always adhere to the letter and spirit of the law. They must adhere to the limits set by Congress on the Fed’s authority “She stated.
“I am aware of the constraints and authority imposed by Congress and have always behaved in accordance with them… I’ve never strayed from these… points of view.” Raskin stated that her role as vice-chair for oversight would not allow her to pursue the policies that Toomey is concerned about.
“Banks pick their borrowers,” Raskin explained. “The Federal Reserve does not.” Toomey was not convinced.
“This is what I hear you saying. However, the issue is the massive document documented weight where you have claimed something completely different “Toomey stated. “There is no rational reading of these papers and speeches that can lead to anything other than the conclusion that money should be diverted away from companies that emit high volumes of CO2.”
In his opening speech at the hearing, Toomey also accused Michigan State economics professor Lisa Cook of leftist bias. She has been nominated to serve on the Federal Reserve’s board of governors. Toomey said, “It’s also worth noting Professor Cook’s radical left-wing political activism.”
“She has actively advocated for racial reparations, pushed theories about Georgia voting rules, and worked to cancel any who disagree with her.”
Meanwhile, Democrats on the committee praised Cook’s and Raskin’s credentials, emphasizing their varied backgrounds. Brown responded to Raskin’s criticism by stating that she had previously been confirmed overwhelmingly by the Senate. Meanwhile, Sen. Elizabeth Warren, D-Mass., utilized statements by Fed Chairman Jerome Powell to support Raskin’s views on climate change.
