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February 16, 2023
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THE TOP
Happy Thursday morning.
With a high-profile opening at the Federal Reserve, key Senate Democrats are lining up behind a long-running effort by Sen. Bob Menendez (D-N.J.) – making the U.S. central bank more diverse by selecting its first Hispanic governor.
The Wall Street Journal reported on Wednesday that the White House was considering Austan Goolsbee, president of the Chicago Fed, to be the Federal Reserve’s next vice chair. Goolsbee would replace Lael Brainard, who will take over as director of the National Economic Council later this month. Several potential new Fed nominees were floated, and the business pubs suggested several more. Most of these potential picks are eminently qualified, but they’re also white, which is the issue.
Keep this reporting in perspective: No nomination has been made yet, and Biden’s White House has previously floated nominees for regulatory positions before changing course weeks or months later.
But here’s the interesting dynamic: Multiple Democrats on the Senate Banking Committee told us Wednesday night that they want to see the White House prioritize diversity with its pick to replace Brainard, including the panel’s chair, Sen. Sherrod Brown (D-Ohio).
“I’ve worked for a very diverse Fed,” Brown told us. Brown pointed to two successful nominations that cleared the Senate last year – Fed Govs. Lisa Cook and Philip Jefferson – and said both Black economists exemplified a “diversity of thought” by prioritizing the Fed’s dual mandates of price stability and maximum employment.
“I’ve spoken to the White House about all those things – diversity of thought, diversity of candidates,” Brown said, adding: “There’s never been a Latino on the Fed board.”
There’s early evidence this push by Menendez will attract support from more than just the Banking Committee’s progressives. Sen. Mark Warner (D-Va.) told us he had enjoyed working with Goolsbee in the past and said he’s a “smart economist.”
But Warner also noted that “Sen. Menendez has a very good point – that we don’t have a single Latino member on the Fed.”
The White House faces similar pressure on replacing Labor Secretary Marty Walsh when he leaves that post as expected. AAPI lawmakers want to see an Asian American pol tapped for that Cabinet position, while other Democrats have been pushing their own potential candidates.
The lack of Hispanic representation inside the Fed is a topic that Menendez has been hammering for years now. Last night, we asked whether the New Jersey Democrat’s preference for a Hispanic Fed governor would be enough to vote against Goolsbee if the White House nominated him.
Menendez replied: “I’ve been making it very clear to the administration. They need to give me someone to vote for, and that somebody should be Hispanic.”
Sen. Ben Ray Luján (D-N.M) told us he would “absolutely” stand behind Menendez’s push for a Hispanic Fed governor:
Senate Republicans on the Banking Committee are ambivalent on this particular point. Sen. John Kennedy (R-La.) said his chief concern was having officials inside the Fed who were focused on quashing inflation.
“I don’t care what gender they are. I don’t care what color they are. I don’t care what their politics is,” Kennedy said. “I want them to be able to explain to me how they’re going to get us back to lower inflation, preferably 2%, without putting everyone in America out of work and crashing the economy.”
Sen. Thom Tillis (R-N.C.) said he was “sympathetic” to Menendez’s push, adding that he wanted to see “someone with a track record that’s going to still keep the Fed a consensus organization.”
“I would hope that the White House would recognize they’ve got the dual challenge of finding someone that I would support,” Tillis said, “and that the concerns of Menendez and others are addressed too. Otherwise, it could be tough sledding.”
Also: Axios’ Barak Ravid scooped Wednesday night that Senate Majority Leader Chuck Schumer is headed to Israel next week with a group of fellow Senate Democrats. This is a rare codel for Schumer, who spends most of his non-Washington time back home in New York or doing political travel.
We don’t expect much in the way of press events for Schumer during this trip. Axios reported that the Senate delegation will meet with Israeli Prime Minister Bibi Netanyahu and President Issac Herzog, but details of the trip are still fluid, we’re told.
– Brendan Pedersen and John Bresnahan
THE NEW MAJORITY
Inside the House GOP effort to train staffers on oversight
As House Republicans begin a series of investigations into the Biden administration, GOP leadership is holding a variety of staff training sessions to bring aides up to speed on life in the majority.
At Punchbowl News, we always say the Hill runs on staffers. And with Republicans enjoying their first House majority since 2018, aides who’ve only known the minority need to be trained.
The offices of Speaker Kevin McCarthy, House Majority Leader Steve Scalise and House Administration Committee Chair Bryan Steil (R-Wis.) are conducting the training sessions as part of their “Running an Effective Committee in the Majority” series.
A total of 185 staffers have already taken part in seven briefings. The series kicked off on Jan. 24 and will run until Feb. 27.
Under the “Oversight Education Series” section, staffers were briefed on the following topics: “Investigations 101,” “Working with House Counsel,” “Informing America” and “Deposition Deep Dive.”
Other general topics included: “Legislative Clerk Training,” “Records Management,” “Hearing Procedure,” “Markups Procedure,” “Communications” and “Working with Legislative Counsel.”
— Max Cohen
BORDER WARS
McCarthy, freshmen Republicans to the border today
Speaker Kevin McCarthy will visit the U.S.-Mexico border in Arizona today with four House Republican freshmen.
Local media outlets say this is the first time a sitting House speaker has visited the U.S.-Mexico border in Arizona.
The lawmakers on the trip include local Rep. Juan Ciscomani (R-Ariz.), as well as GOP Reps. Derrick Van Orden (Wis.), Lori Chavez-DeRemer (Ore.) and Jen Kiggans (Va.).
The group will get a briefing at the Customs and Border Patrol’s Tucson sector headquarters before an aerial tour of the border and a visit to a ranch in Cochise County. They’ll hold a news conference in Cochise County later this afternoon.
Ciscomani, who delivered the Republican Spanish-language response to President Joe Biden’s State of the Union address, spoke to KGUN, the local ABC affiliate, Wednesday and said he would use his position on the Appropriations Committee to advocate for more resources for the border.
The House Judiciary Committee will have its own border hearing next Thursday in Yuma, Ariz, as we reported in Midday on Tuesday. Only Republicans plan to attend. Democrats told us they had scheduling conflicts and will hold their own hearing as soon as next month.
— Jake Sherman
PRESENTED BY AMERICAN BEVERAGE ASSOCIATION
The Coca-Cola Company, Keurig Dr Pepper and PepsiCo are offering more choices with less sugar. In fact, nearly 60% of beverages sold contain zero sugar. BalanceUS.org
THE MONEY GAME
Ten GOP senators hosting fundraiser for Banks at NRSC HQ
Next month, Rep. Jim Banks’ (R-Ind.) Senate campaign will receive its biggest institutional boost of support to date. On March 28, ten GOP senators — including NRSC Chair Steve Daines (R-Mont.) — are holding a fundraiser for Banks at the campaign arm’s D.C. headquarters.
Check out the invite here, which includes some very high-profile GOP senators.
Daines tweeted out a statement of support for Banks in late January, but holding a Banks fundraiser in the NRSC Majority Room is a further step in the direction of official backing.
Banks is running for Sen. Mike Braun’s (R-Ind.) current seat. Braun announced earlier this cycle he was running for governor in 2024.
— Max Cohen and John Bresnahan
INSIDE THE HOUSE GOP
What Republicans will do at the NRCC retreat
The NRCC is holding its annual donor retreat this weekend in Key Biscayne, Fla., one of the barrier islands off of Miami.
House Republican sources tell us that more than 90 lawmakers will attend the event at the Ritz-Carlton.
Here’s the schedule. You’ll notice that some of the big donors get access to special VIP events.
– Jake Sherman
PRESENTED BY AMERICAN BEVERAGE ASSOCIATION
America’s beverage companies are delivering more choices with less sugar. BalanceUS.org
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