Ford School Dean Michael S. Barr provided insight for Sen. Elizabeth Warren (D-MA) as she pressed the Senate to confirm Professor Sarah Bloom Raskin as Fed Vice Chair for Supervision, noting the increased risks the vacancy poses to the U.S. financial system. Warren, a member of the Senate Banking, Housing, and Urban Affairs Committee and the Senate Finance Committee, had requested commentary from economic experts about the slow confirmation process.
“These experts are right. It is critical that Ms. Raskin be confirmed quickly, and the failure to do so leaves the Fed less capable of ensuring financial stability. This is particularly dangerous given the threats to the international economy from the ongoing Russian attacks in Ukraine, and it is outrageous that Republican members of the Committee are preventing the Committee from even voting on her nomination,” Sen. Warren said in a statement.
Barr's commentary concluded, "In my judgment it would not be appropriate to delay confirmation of the Vice Chair for Supervision, or to delay the confirmation of any of the pending nominees to serve on the Board of Governors. All of the nominees are highly qualified to serve. It greatly weakens the ability of the Board to conduct monetary policy and supervise the financial system to have these nominees’ confirmations delayed."
