Americans for Financial Reform Issues Call for Wall Street Regulation
Following the announcement that President Biden has nominated three new members to the Board of Governors of the Federal Reserve, consumer advocacy group Americans for Financial Reform praised the nominees and called for more aggressive regulation of Wall Street by the Fed.
Biden announced the nomination of Sarah Bloom Raskin to serve as Vice Chair for Supervision of the Board of Governors of the Federal Reserve System and the nomination of Lisa Cook and Philip Jefferson to serve on the Board of Governors of the Federal Reserve System.
In announcing the move, the White House noted:
Our economy has made enormous progress over the past year, with 6.4 million jobs created and unemployment falling to 3.9% — four years faster than projected. At the same time, our economy is facing the challenge of price increases that are squeezing families’ budgets.
The President is confident that the Federal Reserve will act to achieve their dual goals of maximum sustainable employment and price stability and make sure that price increases do not become entrenched over a long term with the independence that they need.
Americans for Financial Reform expressed confidence in the nominees and called for swift Senate approval.
President Biden’s nomination of the highly qualified Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson to the Federal Reserve Board is a very welcome step forward towards a better-regulated Wall Street, which remains vital for protecting financial stability and building a more just and sustainable economy. The Senate should confirm them to their posts as soon as possible.
Additionally, the consumer-friendly group suggested the new nominees should push the Federal Reserve in a new direction.
The Fed needs to steer a new course that begins with a reversal of the deregulation of the Trump era. This work must continue with pro-active regulation and supervision of Wall Street to tackle the dangers posed to everyday people and the stability of the financial system by excessive risk-taking and concentrated corporate power.
The group also noted the nominees represent an opportunity to give voice to historically under-represented groups.
The nomination of two Black Americans, Cook and Jefferson, is an important step to diversify the Fed board. It remains the responsibility of all members of the Board to help fight structural racism and promote economic justice. The Fed cannot continue its pattern of enabling speculation in financial markets and then bailing Wall Street out while everyday people, especially communities of color, suffer.
About the nominees:
Sarah Bloom Raskin has served both as the Deputy Secretary of the U.S. Department of the Treasury and as a Governor of the Federal Reserve Board. At Treasury, she oversaw the Treasury Department and its various agencies and departments, pursuing innovative solutions to enhance American’s shared prosperity, the resilience of our country’s critical financial infrastructure, particularly as it related to climate risk and cybersecurity, and the defense of consumer safeguards in the financial marketplace.
Lisa D. Cook is a Professor of Economics and International Relations at Michigan State University. She was the first Marshall Scholar from Spelman College and received a second B.A. in Philosophy, Politics, and Economics from Oxford University. She earned a Ph.D. in economics from the University of California, Berkeley with fields in macroeconomics and international economics. She was an adjunct professor at Harvard University’s Kennedy School of Government, Deputy Director for Africa Research at the Center for International Development at Harvard University, and a National Fellow at Stanford University.
Philip N. Jefferson is Vice President for Academic Affairs and Dean of Faculty and the Paul B. Freeland Professor of Economics at Davidson College. He serves on the Vassar College Board of Trustees, the Board of Advisors of the Opportunity and Inclusive Growth Institute at the Federal Reserve Bank of Minneapolis and is a past president of the National Economic Association. He is a Faculty Affiliate of the Institute for Research on Poverty at the University of Wisconsin-Madison. His research has appeared in several journals and has been funded by grants from the National Science Foundation.