The Competitive Enterprise Institute (CEI) signed onto a letter by the American Energy Alliance (AEA) opposing the White House’s nomination of Sarah Bloom Raskin to be Vice Chair for Supervision at the Federal Reserve.
Writing to Senators Sherrod Brown (D-OH) and Pat Toomey (R-PA), the chairman and ranking member of the Senate Banking Committee, AEA President Thomas Pyle and CEI experts Myron Ebell and John Berlau contend that Raskin’s public pronouncements on Fed policy towards fossil fuel producers make her unfit for the role.
“Ms. Raskin endorses using the powers of the Federal Reserve outside of its statutorily-defined role. Anyone confirmed by the Senate should be committed to executing the law, rather than to pursuing a personal vendetta against certain types of energy.
“As noted above, nearly 80 percent of America’s energy currently comes from natural gas, oil, and coal. Precipitous action to end financing for these industries would have dire economic consequences such as we are currently seeing in Europe.
“We urge President Biden to withdraw the nomination of Ms. Raskin, and if he does not do so, we urge the committee to vote against her confirmation. Congress has charged the Federal Reserve with maintaining a stable environment for the effective operation of the financial system, but this is very different from actually directing the flow of capital as Ms. Raskin would like to do. Ms. Raskin’s confirmation would be a recipe for financial instability.”
Director of CEI’s Center for Energy and Environment Myron Ebell said:
“The Senate should not confirm Ms. Raskin to the Federal Reserve, where she appears eager to misuse the Fed’s considerable authority to try to destroy the coal, oil, and gas industries.”
CEI Director of Financial Policy John Berlau said:
“As late as 2020, Sarah Bloom Raskin called for the Fed to actively discriminate against oil, gas, and coal firms in its lending programs. If confirmed as Vice Chair for Supervision, she could force banks to deprive these sectors of financial services to the detriment of the economy as a whole. The Senate must reject her nomination and stand up for ordinary American consumers, investors, and entrepreneurs still reeling from the pandemic and the onslaught of inflation.”