Senior Republican warns Biden against choosing Brainard for Fed chairman

Its. Pat toomeyPatrick (Pat) Joseph ToomeyBlack Women Seek To Build On Achievements In Upcoming Election Watch Live: Republican Senators Present New Infrastructure Proposal Sasse Reprimanded By Nebraska Republican Party For Impeachment Vote MORE (Pennsylvania), the highest-ranking Republican on the Senate Banking Committee, warned Thursday President BidenJoe Biden Florida Republicans Vote To Limit Vaccine Mandates Bill Honoring 13 Service Members Killed In Afghanistan Heads To Biden’s Desk Overnight Defense And Homeland Security – Presented By Boeing – Pentagon Promises More Transparency In air strikes MORE against electing Lael Brainard to serve as the next chair of the Federal Reserve, signaling a Senate fight for her nomination if she is selected.

“I have many serious concerns about Governor Brainard if she were nominated to preside,” Toomey said after leaving a Banking Committee hearing Thursday morning.

Biden is expected to announce his decision on who should chair the Fed in the coming days. The top two candidates for the position are Brainard and current President Jerome Powell, who was appointed by the former President TrumpDonald Trump On The Money – Biden Warns Oil Industry Memo: Gosar Censored, But Toxic Culture Rises Cleveland MLB Team Officially Renames Guardians Friday MORE.

Brainard is the only Democrat currently serving on the central bank’s seven-member board.

Toomey has made it clear that he does not believe the Federal Reserve should base its monetary policy and other decisions on concerns about future climate change, which he views as a political debate.

Brainard said last month that he believes the central bank has a responsibility to address climate change.

She said in remarks prepared for a Fed conference that the Fed was working to project how climate-related economic shocks would affect the financial system.

“I anticipated that it will be useful to provide supervisory guidance for large banking institutions in their efforts to properly measure, monitor and manage material climate-related risks, following the example of several other countries,” he said in his prepared speech.

In a letter to Fed Chairman Jerome Powell, Toomey expressed concern that the Federal Reserve Board may soon use its enormous power over the economy to try to combat climate change, which some experts believe could have a significant impact on future economic conditions.

Toomey in his letter said he is “concerned that the Federal Reserve Board may be preparing to use financial regulation and supervision to further environmental policy objectives.”

That would be beyond the scope of the Federal Reserve’s mission. We urge you to refrain from taking additional action on climate-related risks that impose certain costs for an uncertain benefit, ”he wrote.

Brainard has also come under scrutiny for being a proponent of a Fed-backed digital dollar.

Toomey, at a hearing in June, said Congress should encourage the development of private digital currencies, but expressed concern over the creation of a central bank digital currency.

“Some say a central bank digital currency is needed to allow the Fed to provide retail bank accounts to Americans. In my opinion, turning the Fed into a retail bank is a terrible idea. Our retail banks do a great job of serving the needs of consumers because they compete with each other in the private sector, ”he said.

Shares of Brainard have risen in recent days as top progressives have pushed Biden to choose her over Powell.

Its. Elizabeth warrenElizabeth WarrenBill Honoring 13 Service Members Killed in Afghanistan Addresses Biden’s Desk Equilibrium / Sustainability – Presented by Southern Company – COVID-19 Kills Snow Leopards at US Zoo Inflation Increases Focus on Biden Fed’s choice MORE (D-Mass.), A forward-thinking leader on the Banking Committee, has praised Brainard for making “a good case of why it’s the Federal Reserve’s job to be that up-to-date cop and make sure the biggest financial institutions are up to speed. without putting our economy at greater risk. ”

He has also spoken out vigorously against Powell’s bid to serve another term as president, calling him “a dangerous man to head the Fed.”

He criticized Powell’s leadership at a hearing in September, when he argued that the Fed had weakened stress tests, relaxed the Volker Rule and eased liquidity requirements at financial institutions.

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