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Biden picks Michael Barr for Fed’s bank regulation post

President Joe Biden announced Friday that he intends to appoint Michael Barr, Rector of the University of Michigan School of Public Policy, as Vice President of Supervision at the Federal Reserve. Barr’s choice comes after Biden’s first choice for the Fed post, Sarah Bloom Ruskin, withdrew her candidacy a month ago in the face of opposition from Republicans and a Democrat, Sen. Joe Manchin from West Virginia. Raskin’s critics had argued that he would apply the Fed’s regulatory approach to climate change and possibly discourage banks from lending to energy companies. “His candidacy had previously been approved by the Senate on a bipartisan basis.” Michael is bringing the know-how and experience needed for this important position at a critical time for our economy and our families across the country, “Biden said. The Democratic president said Barr “has spent his career protecting consumers and during his time at the Treasury he played a crucial role in setting up both the Office of Consumer Financial Protection and the position I am proposing.” Barr is the dean of the Gerald R. Ford School of Public Policy in Michigan. He was Assistant Secretary of the Treasury for Financial Institutions during the Obama administration, helping draft the 2010 Dodd-Frank Regime after the catastrophic 2008 financial crisis. In the Supreme Court, he also served during the Clinton administration in the White House, the Treasury Department and the State Department. Despite these credentials, some Liberal critics last year blocked Barr position responsible for regulating national banks. These critics were skeptical of Barr’s role on the advisory boards of Lending Club and Ripple Labs. He also claimed that he had helped weaken proposals for tougher banking regulations during the Obama administration. “I urge my Republican colleagues to abandon their old book of personal aggression and demagoguery and put Americans and their pockets first.” David Dworkin, president of the National Fed Housing Conference, which supports affordable housing, suggested that Barr’s understanding of Wall Street gives him the right combination of to gain confirmation in a narrowly divided one Senate. Barr would join the Fed at a particularly difficult and demanding time. period of high risk for the central bank and the economy. The Fed is set to raise interest rates aggressively in the coming months to try to reduce persistently high inflation. However, it will be extremely difficult for Fed Chairman Jerome Powell – who is awaiting Senate confirmation for a second term – to slow inflation by raising borrowing costs without also weakening the economy and possibly even causing a recession. “for landing a very complicated plane on the catwalk smoothly,” Dworkin said. “It’s very difficult to do.”

President Joe Biden announced Friday that he intends to appoint Michael Barr, rector of the University of Michigan School of Public Policy, as vice president of oversight at the Federal Reserve.

Barr’s choice comes after Biden’s first choice for the Fed’s position, Sarah Bloom Ruskin, withdrew her candidacy a month ago in the face of opposition from Republicans and a Democrat, Senator Joe Manchin of West Virginia. Raskin’s critics had argued that he would apply the Fed’s regulatory principle climate change and possibly discourage banks from lending to energy companies.

But with Barr, Biden noted the importance of politics in a statement Friday that said his candidate had previously cleared the Senate on a bipartisan basis.

“Michael brings the know-how and experience needed for this important position at a critical time for our economy and our families across the country,” Biden said.

The Democratic president said Barr “spent his career protecting consumers and during his tenure at the Treasury he played a crucial role in setting up both the Office of Consumer Financial Protection and the position I am proposing.”

Barr is the dean of the Gerald R. Ford School of Public Policy in Michigan. He was Assistant Secretary of the Treasury for financial institutions during the Obama administration who helped plan the 2010 Dodd-Frank Regulations after the catastrophic financial crisis of 2008.

Bar, a Rhodes Scholar who served as Judge David Souther on the Supreme Court, also served during the Clinton administration on the White House, the Treasury, and the State Department.

Despite these credentials, some liberal critics blocked Barr’s candidacy for the Biden government last year. currency controller, a position responsible for regulating national banks. These critics were skeptical of Barr’s role on the advisory boards of Lending Club and Ripple Labs. They also claimed that he had helped weaken proposals for stricter banking regulations during the Obama administration.

But Ohio Sen. Serod Brown, the Democratic chairman of the Banking Committee, voiced Barr’s full support.

“Michael Barr understands the importance of this role at this critical juncture for our economic recovery,” Brown said. “I strongly urge my Republican colleagues to abandon their old book of personal aggression and demagoguery and put Americans and their pockets first.”

Others praise Barr and say he seems fit for the Fed position.

David Dworkin, president of the National Housing Conference, which advocates affordable housing, suggested that Barr’s understanding of Wall Street gives him the right combination of “central know-how and progressive policy views” to gain confirmation in a narrowly divided Senate. .

Barr would join the Fed in a particularly challenging and high-risk period for the central bank and the economy.

The Fed is set to raise interest rates aggressively in the coming months to try to reduce persistently high inflation. However, it will be extremely difficult for Fed Chairman Jerome Powell – who is awaiting the Senate confirmation for a second term – to slow inflation by raising borrowing costs without also weakening the economy and possibly even causing a recession.

“This is the smooth landing of a very complex plane on the runway,” Dworkin said. “It’s very difficult to do.”

Biden picks Michael Barr for Fed’s bank regulation post Source link Biden picks Michael Barr for Fed’s bank regulation post

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