The Archive

Biden’s Fed noms face limited opposition from GOP so far

The White House’s latest trio of nominees for the Federal Reserve Board haven’t endured too much partisan turbulence this time around.

The Senate Banking Committee hosted three Fed candidates for a nomination hearing last week. The broader dynamics feel a bit like musical chairs, as the Senate has already confirmed all three of these candidates for one post or another during the past couple of years.

Current Fed board member Philip Jefferson was nominated to be the central bank’s next vice chair after the departure of Lael Brainard for the White House. Another board member, Lisa Cook, was nominated to a full 14-year term.

Adriana Kugler, who was confirmed earlier in the Biden administration to serve as U.S. executive director at the World Bank, was nominated to be the Fed’s newest governor. She would also be the first Hispanic American to serve on the Federal Reserve Board, a top priority for several senators.

Taken together, these nominees represent a hefty chunk of the Biden administration’s financial policy personnel picks. But you might not know that from the muted Republican opposition we’ve seen so far.

Last week’s nomination hearing was about as genteel as one could expect. A number of Republicans, including Sen. Thom Tillis (R-N.C.), signaled support for Jefferson in particular. This wasn’t exactly surprising as 91 senators backed Jefferson when he was confirmed to the Fed in May 2022.

Some of the only confrontational questioning came from Sen. J.D. Vance (R-Ohio) toward Cook. The first Black woman to serve on the Fed’s board, Cook’s confirmation squeaked through along party lines in 2022.

Vance pressed Cook for her views on racial justice and diversity, including what role a lack of diversity might have played in the 2008 financial crisis or this spring’s bank collapses. But even Vance noted toward the end of his questions that Cook was “likely to be confirmed.”

This is all evidence for how the Senate’s nomination politics have shifted in the 118th Congress. Having 51 Democrats in the upper chamber means that partyline opposition from the GOP won’t derail a nominee before they can clear a committee vote.

That happened in a dramatic fashion back in 2022, when Senate Banking Republicans led by former Sen. Pat Toomey (R-Pa.) boycotted an executive session that would have sent Sarah Bloom Raskin to the Senate floor to be the next Fed vice chair for supervision. Raskin ultimately withdrew her nomination in the face of GOP opposition.

This is shaping up to be a much calmer affair, even for Kugler — the only nominee up for Senate consideration who isn’t already sitting on the Fed board. But it helps that her nomination has been championed by Sen. Bob Menendez (D-N.J.), who has been pressuring the White House to put a Latino on the central bank’s board for years.

Talking to reporters, Menendez said he was optimistic about Kugler’s chances. “The fact that most of my Republican colleagues didn’t even ask her a question — I think that’s an extraordinary statement of her abilities,” Menendez said.

If we had to guess, Senate Republicans are keeping their powder dry for a fight they’ve got a better shot at winning. Catching up with GOP lawmakers after the hearing, no one was a hard no for any of the noms.

Tillis told us he was “leaning no” on Cook and Kugler, “but we’re doing our research.”

Sen. Katie Britt (R-Ala.) said she “appreciated the opportunity to sit down with them in my office and ask some questions.” Britt didn’t have any specific criticisms, saying only that “We’ve got to have people on the Fed who understand what their job is — their job is not to enforce policy that’s political in nature.”

Senate Banking Committee Chair Sherrod Brown (D-Ohio) hasn’t announced when the panel will vote on the three nominations. The Senate isn’t back until July 10.

— Brendan Pedersen

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What we’re watching

Just two committee hearings of note this week.

Monday: The House Natural Resources subcommittee on water, wildlife and fisheries will have a hearing entitled “The Northwest at risk: the environmentalist’s effort to destroy navigation, transportation, and access to reliable power.” This will be at Richland High School in Richland, Wash.

Tuesday: The House Judiciary Committee’s subcommittee on courts, intellectual property and the internet will hold a hearing on the Music Modernization Act, five years after its enactment. The hearing will be in Nashville, Tenn.

Among the witnesses: David Porter, a hall of fame songwriter who penned “Soul Man.”

— Jake Sherman

DOWNTOWN DOWNLOAD

Green Thumb Industries, a major marijuana grower, has hired Akin Gump to lobby on “[f]ederal cannabis legislation related to banking, tax, and capital market access; Farm Bill policies related to hemp.” On the account: Brendan Dunn, a former top Senate GOP leadership staffer, and ​Reginald Babin, Senate Majority Leader Chuck Schumer’s former chief counsel.

— Jake Sherman

THE CAMPAIGN

EMILYs List Action is running a nationwide television campaign about abortion. The ad features a speech by Vice President Kamala Harris and an image of Speaker Kevin McCarthy when Harris talks about a nationwide abortion ban.

— Jake Sherman

MOMENTS

11:45 a.m.: President Joe Biden and Vice President Kamala Harris will “kick off the next phase of Administration’s Investing in America tour with a significant high-speed internet infrastructure announcement here at the White House.” Commerce Secretary Gina Raimondo will also participate.

12:30 p.m.: Biden and Harris will have lunch.

2 p.m.: Biden will get his daily intelligence briefing. … Karine Jean-Pierre will brief.

Biden’s week: Tuesday: Biden will travel to Chevy Chase, Md., for fundraisers. Wednesday: Biden will travel to Chicago for fundraisers and a speech on “Bidenomics.” Thursday: Biden will travel to New York for fundraisers. Friday: Biden will speak about “lowering costs for hardworking Americans” before heading to Camp David.

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