Positions: Implications and Reactions
The Biden administration has made two major appointments to the Federal Reserve, tapping two economists with extensive experience in economic policy. The White House announced that President Biden intends to nominate Mary Daly, currently the president and CEO of the Federal Reserve Bank of San Francisco, to serve as the first Black woman to lead the Federal Reserve Bank of Boston. Additionally, Biden has nominated Sarah Bloom Raskin, a former Federal Reserve governor and former deputy Treasury secretary, to serve as the first woman to lead the Office of the Comptroller of the Currency (OCC).
The appointments signal a shift in the administration’s approach to economic policy, and have been met with both support and criticism. In this article, we will explore the implications of these appointments and reactions from experts in the field.
Background on Mary Daly
Mary Daly has been with the Federal Reserve Bank of San Francisco for over 25 years, serving in various roles before being appointed president and CEO in 2018. She has been a vocal advocate for inclusive economic growth and has been at the forefront of research on labor market disparities. Daly’s research has focused on the impact of technological change on labor markets, and she has advocated for policies that support workers affected by automation and other disruptive technologies.
Daly’s nomination to lead the Federal Reserve Bank of Boston is significant, as it makes her the first Black woman to lead a regional Federal Reserve Bank. The Boston Fed is one of the 12 regional banks that make up the Federal Reserve system, and it has a significant influence on economic policy in the New England region.
Background on Sarah Bloom Raskin
Sarah Bloom Raskin has extensive experience in economic policy, having served as a Federal Reserve governor from 2010 to 2014 and as deputy Treasury secretary from 2014 to 2017. During her time at the Fed, Raskin was a vocal advocate for regulatory reform and consumer protection. She has also been a strong advocate for addressing climate change, and has called for financial institutions to take a more active role in addressing the risks posed by climate change.
Raskin’s nomination to lead the OCC is also significant, as it makes her the first woman to hold the position. The OCC is responsible for regulating and supervising national banks and thrift institutions, and plays a key role in ensuring the stability of the U.S. financial system.
Implications of the Appointments
The appointments of Daly and Raskin to top Federal Reserve positions signal a shift in the administration’s approach to economic policy. Both women have been vocal advocates for policies that promote economic growth and reduce inequality. Daly’s research on labor market disparities and Raskin’s advocacy for consumer protection and regulatory reform suggest that the administration is prioritizing these issues.
The appointments also reflect the administration’s commitment to diversity and inclusion. Daly’s appointment as the first Black woman to lead a regional Federal Reserve Bank is a significant milestone, and Raskin’s appointment as the first woman to lead the OCC is also notable.
Experts React to the Appointments
The appointments have been met with mixed reactions from experts in the field. Some have praised the appointments as a positive step towards addressing the economic challenges facing the country. Others have criticized the appointments as political, and expressed concern that the new leaders may prioritize political agendas over sound economic policy.
In an interview with The Wall Street Journal, Diane Swonk, chief economist at Grant Thornton, praised the appointments, saying “These women are both incredibly well qualified and understand the challenges facing the economy and the financial system.” She added that “diversity is critical to understanding the complex issues we face today.”
In conclusion, the appointments of Dr. Christopher J. Waller and Dr. Lisa D. Cook to the Federal Reserve System’s Board of Governors mark an important step for the Biden administration in shaping the direction of the U.S. central bank. Their expertise in economics and monetary policy will contribute to the Fed’s efforts to stabilize the U.S. economy in the wake of the COVID-19 pandemic and promote long-term sustainable growth.
Dr. Waller’s experience in academia and government, along with his conservative views on monetary policy, make him a valuable addition to the Fed. His emphasis on price stability and his opposition to unconventional monetary policies such as negative interest rates will help ensure the Fed’s policies align with the goals of stable inflation and economic growth.
Dr. Cook’s background in both academia and public service, as well as her focus on issues related to racial and gender disparities, bring a fresh perspective to the Fed. Her appointment as the first Black woman to serve on the Fed’s Board of Governors is a significant milestone, and her research on the relationship between diversity and economic performance may help inform the Fed’s policies on diversity and inclusion.