Fed confirmations, Ukraine center stage, DC and Crypto

Key Takeaways

  • Powell confirmed for second term as Fed Chair, two Biden Fed Governors approved by Senate. Next FOMC meeting June 14/15.
  • Ukraine aid moving quickly through Congress.  Trips by Speaker Pelosi and Senate Republican Leader McConnell demonstrate rare bipartisan agreement.
  • Large crypto losses likely to lead to increased interest in DC.

The Federal Reserve Board of Governors has seven statutory Governors, but when Governors Quarles and Clarida resigned at the beginning of the year it left three vacancies on the Board. With the rise of inflation, and the critical role the Federal Reserve plays in the economy, there was obviously some urgency to have a full Board to deal with critical economic decisions.

President Biden named three new nominees: Sarah Bloom Raskin, Lisa Cook and Philip Jefferson.  Sarah Bloom Raskin, who had served both on the Board as a Governor and in a senior position at Treasury, had to withdraw her name after Democratic Senator Manchin joined united Republican opposition in wake of writing by Raskin that the Fed should do more to discourage banks from lending to oil and gas companies. 

In addition to Bloom Raskin, President Biden had also nominated economists Lisa Cook and Philip Jefferson to the Board.  The hang-up was united Republican...
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