The Federal Reserve's top bank regulator will not be confirmed on Tuesday after a Democratic senator said he would vote against her, most likely dooming her chances of confirmation.
According to two people familiar with the decision, Ms. Raskin sent a letter to the White House asking to be removed from consideration to be the Fed's vice chair for supervision. The letter was reported by the New Yorker.
Mr. Biden said in a statement that Sarah was subject to baseless attacks from industry and conservative interest groups.
The Fed Board, which oversees the nation's largest banks, will not have a regulatory voice after Ms. Raskin's candidacy ends, but it could pave the way for confirmation for the White House. The Republicans were holding up the White House's four other Fed nominees, including Powell, because they were stonewalling Ms. Raskin's nomination.
Lael Brainard has been nominated by Mr. Biden to be the Fed's vice chair.
Mr. Biden urged the Senate Banking Committee to quickly confirm the four nominees for the Board of Governors.
Ms. Raskin probably didn't have enough support to pass the Senate. Senator Joe Manchin III, Democrat of West Virginia, said on Monday that he would not vote to confirm her.
Mr. Manchin's decision to not support Ms. Raskin doomed her chances in the Senate. The Democrats needed all 50 of their caucus members to vote for Ms. Raskin.
Republicans had shown little appetite for putting a supporter of tougher bank regulation into a powerful regulatory role at the Fed and had also boycotted her nomination over her work in the private sector. Lawmakers refused to show up for a vote on her nomination.
They seized on her writings, saying that she would be too aggressive in policing climate risks within the financial system and would overstep the unelected central bank's boundaries.
McConnell said that President Biden was asking for senators to support a central banker who wanted to take the Senate's policymaking power for herself. It is time for the White House to admit their mistake and send us someone suitable.
Mr. Manchin cited Ms. Raskin's climate comments in explaining his opposition.
Ms. Raskin wrote an opinion piece in September of 2021 that argued that the U.S. regulators should consider how they might be brought to bear on efforts to mitigate climate risk.
She didn't argue that the Fed push beyond its legal boundaries, and the fierce backlash that the issue of climate-related regulation is politically fraught territory in the United States.
The White House may want to take some time, lick their wounds, and make sure they think about who to nominate next. He expects the White House to name a new nominee before the elections.
After being picked by Mr. Biden to lead the Office of the Comptroller of the Currency, Saule Omarova withdrew her candidacy.
Opponents of Ms. Raskin's confirmation targeted more than just her climate views. She did work in the private sector that they took issue with, as well as the way she answered questions about it.
Republicans had raised concerns about Ms. Raskin's time on the board of directors of a financial technology firm. Reserve Trust was given access to services that it now prominently advertises after Ms. Raskin called a central bank official to intervene.
It is not clear how much Ms. Raskin helped. She made a lot of money from her Reserve Trust work, but the episode raised questions because she previously worked at the Fed. Democrats don't like the revolving door between regulators and financial firms.
Ms. Raskin said she could not remember what happened while she was on the company's board. Senator Patrick J. Toomey of Pennsylvania led his colleagues in refusing to show up to vote on the Fed nominees until she provided more answers.
The other Fed nominees would be allowed to proceed, according to Mr. Toomey.
The chairman of the Senate Banking Committee, Democrat from Ohio, said in a statement on Tuesday that he would hold a markup for the other nominees, and later told reporters that he might move them as soon as this week.
Mr. Brown said that the American people would be denied a thoughtful, experienced public servant who was ready to fight inflation, stand up to Wall Street and corporate special interests, and protect our economy from foreign cyberattacks and climate change.
The progressive Democrats were disappointed that Ms. Raskin wouldn't be confirmed.
The lobbyists have power on Capitol Hill, and when they see their power is being threatened, they fight back hard.
Michael D. Shear was involved in the reporting.
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