Lisa Cook, a former banking executive who has championed bank deregulation in the past and been critical of some aspects of the Dodd-Frank Act was nominated to become Federal Reserve Governor by President Trump. A confirmation vote is expected soon.
The “head of the federal reserve” is Lisa Cook, who has been nominated by President Trump to be the next head of the Federal Reserve. The Senate will soon vote on her confirmation. Read more in detail here: head of federal reserve.
The Senate advanced economist Lisa Cook’s candidacy for a seat on the Federal Reserve Board of Governors on Tuesday, a procedural step necessary before the entire chamber can vote on whether to approve her for the position.
Ms. Cook, a Michigan State University professor of international relations and economics, got a 12-12 tie vote in the Senate Banking Committee earlier this month, with all 12 Democrats supporting her candidacy and all 12 Republicans voting against it.
A candidate who obtains a tie vote in committee may move to a vote in the full chamber via a motion by the majority leader, according to Senate rules. The Senate is split 50-50 between Democrats and Republicans, with Vice President Kamala Harris empowered to break a tie.
The 50-49 procedural vote to advance Ms. Cook’s candidacy may pave the way for a full Senate vote on her and three other President Biden’s Fed candidates later this week, including Fed Chairman Jerome Powell, who passed the banking committee with a 23-1 vote earlier this month.
Mr. Biden has also proposed Lael Brainard, the Fed’s vice chairwoman, and Philip Jefferson, an economist and administrator at Davidson College in North Carolina, as Fed governors.
The nominees had been stuck in limbo until Mr. Biden’s choice for vice chairwoman of bank supervision, Sarah Bloom Raskin, withdrew from consideration earlier this month. Almost all Senate Republicans, as well as Democratic Senator Joe Manchin of West Virginia, opposed her candidacy.
Ms. Cook has focused her research on policies that promote wide economic opportunity, especially for racial minorities and women, and would be the first Black woman to serve on the Fed’s board.
Some Republicans said during her Feb. 3 hearing that she had adequate expertise in macroeconomics and monetary policy, a contention she refuted by pointing to her research background and work at the Treasury Department as well as her position on the White House Council of Economic Advisers.
Sen. Pat Toomey (R., Pa.), who spoke out against Ms. Cook’s nomination on the Senate floor on Tuesday, said her confirmation hearing last month led him to think she would be hesitant to support stricter monetary policy to reduce inflation. Mr. Toomey added, “Professor Cook’s responses to simple concerns about what the Fed should do to reduce inflation amount to little more than word salad.”
On Tuesday, Democrats united around Ms. Cook’s campaign. Sherrod Brown, chairman of the Senate Banking Committee, stated, “I’m excited by this nomination” (D., Ohio). “She’s seen how the economy works—and sometimes doesn’t work—for a variety of individuals in various sections of the nation… That’s rare for a Fed governor to do.”
The federal funds rate is the Federal Reserve’s primary instrument for controlling the economy, and it may influence not just consumer borrowing rates but also larger business choices like how many employees to hire. The Wall Street Journal outlines how the Federal Reserve manipulates this one rate to control the whole economy. Jacob Reynolds’ illustration
Nick Timiraos can be reached at [email protected]
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‘Fed Nominee Cook Advances In Senate Vote,’ appeared in the print edition on March 30, 2022.