ECO 425 University at Buffalo SUNY US National Debt Analysis

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2/3/22, 5:21 PM
As Inflation Soars, Central Banks Scramble to Lift Rates – WSJ
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ECONOMY
As Inflation Soars, Central Banks Scramble to Lift Rates
Bank of England raises rates while ECB leaves door open to tighter monetary policy; facing a ‘tradeoff between strong inflation and weakening growth’
The Bank of England raised its key interest rate for a second consecutive meeting on Thursday,
citing expectations for inflation to accelerate.
PHOTO: HENRY NICHOLLS/REUTERS
By Tom Fairless Follow , Isabel Coles Follow and
Jason Douglas Follow
Updated Feb. 3, 2022 2:16 pm ET
FRANKFURT—Europe’s central banks signaled growing concern about soaring inflation
and a determination to quench it by raising interest rates, a policy shift that creates risks
for investors and the world economy.
The hawkish moves in Europe reflect a growing appreciation among policy makers that
inflation won’t come down as quickly as they had hoped. It echoes a similar shift in the
U.S., where Federal Reserve Chairman Jerome Powell signaled last week that the U.S.
central bank would begin steadily raising interest rates in mid-March.
The moves and signals from Europe’s central bankers Thursday rumbled through markets
globally, with the euro strengthening more than 1% against the dollar, government bond
https://www.wsj.com/articles/bank-of-england-raises-interest-rates-for-second-straight-meeting-11643890280?mod=hp_lead_pos5
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2/3/22, 5:21 PM
As Inflation Soars, Central Banks Scramble to Lift Rates – WSJ
markets selling off and stocks dropping on the prospect for tightening of policy in the
months ahead.
The global economic rebound from the Covid-19 shock has been powerful but uneven,
marked by sharp movements in demand underpinned by enormous fiscal and monetary
stimulus, shortages of labor and materials and mounting inflation.
With economies now in recovery, concerns about inflation are coming to the fore. Central
banks are weighing how to withdraw emergency policies introduced at the start of the
pandemic without damping growth. Policy makers are attempting to thread a path
between supporting the recovery without triggering a self-reinforcing price spiral.
“We face a trade-off between strong inflation and weakening growth,” Bank of England
Gov. Andrew Bailey said.
The Bank of England raised its key interest rate for a second consecutive meeting, to 0.5%,
saying it expected annual inflation to accelerate above 7% within months. It also said it
would begin slowly reducing the size of its bondholdings. Four of nine members of the
bank’s rate-setting committee wanted a bigger rise, to 0.75%, citing widening and more
persistent price pressures than expected.
“We have not raised interest rates today because the economy is roaring away,” Mr. Bailey
said at a news conference. He said officials were pushed to act because spiraling energy
costs and surging goods prices risk fueling broader inflationary pressures in the British
economy.
“An increase in bank rate is necessary because it is unlikely that inflation will return to
target without it,” he said, referring to the BOE’s benchmark rate.
It was the first time the BOE has raised rates at consecutive meetings since 2004. That
“suggests there is concern amongst policy makers about the possibility of inflation
expectations becoming dis-anchored,” said Paul Hollingsworth, chief European
economist at BNP Paribas Markets 360. “Once the inflation genie is out of the bottle, it’s
quite hard to rebottle it.”
In Frankfurt, the European Central Bank kept its key interest rates unchanged, but at a
news conference President Christine Lagarde left the door open to an interest-rate
increase later this year, a turnabout from her position seven weeks ago.
https://www.wsj.com/articles/bank-of-england-raises-interest-rates-for-second-straight-meeting-11643890280?mod=hp_lead_pos5
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2/3/22, 5:21 PM
As Inflation Soars, Central Banks Scramble to Lift Rates – WSJ
Annual inflation in the eurozone rose to a record of 5.1% in January, more than double the
ECB’s target, increasing pressure on the central bank to ditch its plans to keep rates on
hold throughout the year. That compares with an inflation rate of 5.4% in the U.K. and 7%
in the U.S. in December.
“The situation has indeed changed…Inflation is likely to remain elevated for longer than
expected,” Ms. Lagarde said. She signaled that a policy shift might be unveiled as soon as
the ECB’s next policy meeting on March 10.
Nonetheless, she stressed the difference between the U.S. and the eurozone. Eurozone
demand “is pretty much back to where it was pre-Covid,” she said. “In the U.S., it is 30%
up. Ask yourself why. Because of this massive fiscal stimulus that the U.S. economy has
had, unlike the euro area where it has been more moderate, not excessive.”
European government bonds sold off during the ECB news conference. The moves were
sharpest among those issued by southern European governments whose markets are
considered to be more dependent on purchases by the ECB. The 10-year Italian sovereign
bond yield climbed to 1.664% in the biggest rise since December 2020, while the
equivalent German bund yield rose to 0.153%, the highest level since March 2019. The euro
strengthened as much as 1.2% against the dollar after the monetary policy decision was
released, before easing down moderately.
Konstantin Veit, portfolio manager at Pimco, said investors now expect the ECB to end its
bond-buying program as early as April, and a first 0.1 percentage point rate rise in July.
The ECB currently says it plans to continue its bond purchases at least through October.
In Europe, economic growth slowed sharply at the end of last year, and the recent surge in
inflation largely reflects higher energy costs, analysts said. Unlike the U.S., where wages
are soaring, negotiated wages in the eurozone increased 1.36% year-over-year in the third
quarter, a record low since the euro was introduced in 1999, according to ECB data.
“The ECB is not the Fed, but today’s reality check and potential U-turn on 2022 rate hikes
will leave its mark, starting with the peripheral [eurozone] bond market,” said Frederik
Ducrozet, an economist with Pictet Wealth Management in Geneva.
Other central banks are moving in a similar direction.
In Brazil, the central bank on Wednesday increased its benchmark interest rate by 1.5
percentage points to 10.75% and signaled another increase at its next meeting. The Bank
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2/3/22, 5:21 PM
As Inflation Soars, Central Banks Scramble to Lift Rates – WSJ
of Canada signaled last week it would soon start raising interest rates from record lows.
Australia’s central bank this week ended its A$350 billion bond-buying program,
equivalent to US$250 billion.
Japan remains a rare outlier. Bank of Japan Deputy Gov. Masazumi Wakatabe on
Thursday denied speculation of early monetary tightening, saying the nation’s economy is
just beginning to recover from the Covid-19 pandemic.
The comment came as some market participants and economists expect the Japanese
central bank to follow the Fed. In its latest outlook report, the Bank of Japan’s policy
board expects consumer prices to rise about 1% in the year ending March 2024.
Pressure on the ECB to raise rates has mounted in Germany, Europe’s largest economy,
where price inflation has hovered around 5% for months, raising concerns about erosion
of purchasing power in an inflation-averse population. House prices are also rising
sharply, up about 12% year-over-year in the third quarter of 2021, in part because of
ultralow interest rates.
—Anna Hirtenstein contributed to this article.
Write to Tom Fairless at tom.fairless@wsj.com, Isabel Coles at isabel.coles@wsj.com and
Jason Douglas at jason.douglas@wsj.com
Corrections & Amplifications
The BOE said it would begin slowly reducing the size of its bond-buying program, the first
time a major central bank has embarked on a sustained effort to shrink its balance sheet
since the Fed attempted it in 2017. An earlier version of this article incorrectly said the
BOE was the first major central bank to shrink its balance sheet. (Corrected on Feb. 3)
Copyright © 2022 Dow Jones & Company, Inc. All Rights Reserved
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1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
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https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
U.S. ECONOMY
Fed Interest-Rate Decision Tees Up March Increase
Officials have accelerated plans to unwind support for the economy in the midst of rising inflation
By Nick Timiraos Follow
Updated Jan. 26, 2022 10:29 pm ET
The Federal Reserve signaled it would begin steadily raising interest rates in mid-March,
its latest step toward removing stimulus to bring down inflation.
Fed Chairman Jerome Powell said Wednesday that the central bank was ready to raise
rates at its March 15-16 meeting and could continue to lift them faster than it did during
the past decade.
“This is going to be a year in which we move steadily away from the very highly
accommodative monetary policy that we put in place to deal with the economic effects of
the pandemic,” he said at a news conference following a Fed policy meeting.
THE FED IN ITS OWN WORDS
The U.S. central bank issued two statements on monetary policy
•The Federal Open Market Committee Statement
•Principles for Reducing the Size of the Federal Reserve’s Balance Sheet
Stocks sold off while he spoke, reversing big gains from earlier in the day. The S&P 500
closed down 6.52 points, or 0.1%, to 4349.93. The Dow Jones Industrial Average finished
down 129.64 points, or 0.4%, to 34168.09 while the tech-heavy Nasdaq Composite Index
ended almost flat, inching up 2.82 points to 13542.12. Yields on 10-year Treasury
securities climbed as investors anticipated a more aggressive path of rate rises.
Mr. Powell left the door open to raising rates at consecutive policy meetings, which are
held roughly every six weeks. That is something the Fed hasn’t done since 2006.
https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
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1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
“I don’t think it’s possible to say exactly how this is going to go,” he said. Earlier, Mr.
Powell said, “I think there’s quite a bit of room to raise interest rates without threatening
the labor market.”
Mr. Powell’s remarks led investors in interest-rate futures markets to fully anticipate a
March rate increase of at least one-quarter percentage point and a nearly 70% chance of a
second rate increase by the Fed’s meeting after that in early May, according to CME
Group.
Mr. Powell suggested that the Fed wasn’t likely to offer any forward guidance, the term
used for the central bank’s statements describing its intentions with interest rates over
the next few years. Forward guidance has been a central feature of Fed policy.
In 2015, the Fed prepared markets for a mild path of no more than one rate rise every
quarter by saying increases would be “only gradual.” Pressed twice Wednesday on
whether the Fed would follow that approach, Mr. Powell pointed to how the economy is
much different now, with high inflation and very tight labor markets.
The takeaway, said Kristina Hooper, chief global market strategist at Invesco, is that “this
is not the last tightening cycle, and we need to be prepared for it to be faster and for more
substantial moves to be made over the course of the year.”
Relying less on forward guidance means “you risk unhinging market expectations” about
interest rates, said Vincent Reinhart, a former Fed economist who is now chief economist
at Mellon.
The central bank also approved one final round of asset purchases, which will bring the
stimulus program to a conclusion by March. Officials continued deliberations at their twoday meeting over how and when to shrink the Fed’s $9 trillion securities portfolio, which
has more than doubled since March 2020.
The Fed released a separate, one-page statement that spelled out high-level principles to
guide a process for “significantly reducing” those holdings.
https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
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1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
FED WEIGHS INTEREST-RATE INCREASES
•Fed Steps Up Deliberations on Shrinking Its $9 Trillion Asset Portfolio (Jan. 24)
•Fed’s Powell Says Economy No Longer Needs Aggressive Stimulus (Jan. 11)
•Fed Minutes Point to Possible Rate Increase in March (Jan. 5)
•Why Do Prices Keep Going Up and What’s the Cause of Inflation? (Dec. 10)
The central bank in 2020 cut short-term interest rates to near zero and started buying
bonds to lower long-term rates as the coronavirus pandemic hit the U.S. economy,
triggering financial-market volatility and a deep, short recession.
Officials pledged to hold interest rates near zero until inflation was forecast to moderately
exceed 2% and until the labor market returned to levels consistent with maximum
employment. Mr. Powell indicated that he and his colleagues believe those goals have
been met.
Brisk demand for goods and shortages for intermediate goods such as semiconductors
have pushed inflation to its highest 12-month readings in decades. Consumer prices rose
5.7% in November from a year earlier, according to the Fed’s preferred gauge, and easily
surpassed the Fed’s first objective.
It has been developments in the labor market that provided greater urgency in recent
weeks for the Fed to accelerate plans to raise rates much faster than officials anticipated
last summer.
Sharp wage gains and a historic drop in the unemployment rate over the second half of
last year—to 3.9% in December from 5.9% in June—led officials Wednesday to say their
employment-related goal had also been achieved.
https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
3/6
1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
‘There’s quite a bit of room to raise interest rates without threatening the labor market,’ Fed
Chairman Jerome Powell said.
PHOTO: FEDERAL RESERVE
Fed officials face a tricky task of responding to high inflation with two different policy
instruments, which could provide more ammunition to slow the economy, but which have
in the past caused confusion in markets.
Mr. Powell indicated that the Fed would again opt for passively unwinding its asset
holdings on a telegraphed schedule after officials have raised rates. That would allow the
process, in which the Fed no longer reinvests the proceeds of maturing securities into new
ones, to operate “sort of in the background,” Mr. Powell said. As a result, adjustments of
its short-term benchmark interest rate, the federal-funds rate, would remain the primary
way that officials respond to changes in the economic outlook.
The prospect of more interest-rate increases and a shrinking Fed portfolio to reduce
inflation has led to heightened market volatility in recent days, prompting investors to
sell shares of some technology companies, cryptocurrencies and other risky assets that
enjoyed a boom last year.
The Fed’s turn to tighten policy “is definitely not a sudden revelation and has been more
of an evolution, so why the market has just now gotten the message is a little
confounding,” said Tom Graff, head of fixed income and portfolio manager at Brown
Advisory.
Mr. Graff said markets have taken the Fed’s promises of tighter monetary policy more
seriously after officials earlier this month signaled that they had begun contemplating
plans to shrink their asset portfolio. “If your thesis was that a particular stock valuation
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1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
made sense because interest rates were always going to remain extremely low, then that
was on borrowed time,” he said.
For months last year, Mr. Powell and his colleagues said they didn’t need to raise rates to
bring inflation down because they believed high readings stemmed primarily from
supply-chain bottlenecks and other difficulties associated with reopening the economy.
Mr. Powell changed course in November and said that the central bank was concerned
inflation might become entrenched. That set in motion a policy pivot that has been rapid
by Fed standards, given its preference to move slowly to avoid whipsawing markets.
SHARE YOUR THOUGHTS
What steps should the Federal Reserve take to address rising inflation? Join the conversation
below.
The pivot reflected a shifting calculus about the potential for stronger demand to push up
prices such as wages and rents, which could keep inflation elevated even after bottlenecks
and shortages of items such as cars and trucks abate.
Officials are giving more weight to the prospect that the aggressive fiscal- and monetarypolicy responses to the pandemic altered traditional recessionary dynamics, buoying
wage growth that normally takes longer to recover after a downturn.
Officials last month penciled in three quarter-percentage-point interest rate increases
this year and three more next year. They based the projections for the increases on a
forecast that sees inflation slowing to below 3% by December and to slightly more than 2%
by the end of next year.
Mr. Powell said that since the Fed’s last meeting inflation probably appeared slightly
worse than expected. “To the extent the situation deteriorates further, our policy will
have to address that,” he said.
Write to Nick Timiraos at nick.timiraos@wsj.com
Appeared in the January 27, 2022, print edition as ‘Fed Set to Start Increasing Rates By Mid-March.’
https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
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1/30/22, 11:32 AM
Fed Interest-Rate Decision Tees Up March Increase – WSJ
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6/6
1/30/22, 11:31 AM
Prepare for an Unsettling Monetary Tightening Cycle – WSJ
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https://www.wsj.com/articles/prepare-for-an-unsettling-monetary-tightening-cycle-11643290202
CAPITAL ACCOUNT
Prepare for an Unsettling Monetary Tightening Cycle
Unlike in previous cycles, inflation is too high and the Fed isn’t holding the market’s hand
Federal Reserve Chairman Jerome Powell has repeatedly noted that growth is stronger and
inflation much higher than in 2016 to 2018.
PHOTO: BRENDAN SMIALOWSKI – POOL VIA CN/ZUMA PRESS
By
Greg Ip Follow
Jan. 27, 2022 8:30 am ET
If you were born after 1980, the monetary tightening that the Fed said this week will begin
in March will be unlike any you’ve seen.
This is for two reasons, both unsettling for markets. First, when the Fed began raising
interest rates in 1994, 1999, 2004, and 2015, inflation was near or below its desired level
(now formally enshrined as 2%). The tightening was thus pre-emptive, intended to keep
inflation from going up rather than to push it down. That gave the Fed considerable
latitude about how fast to raise interest rates and how to respond to new data.
Today, inflation is too high. Even if December’s 7% rate is adjusted for temporary effects
such as higher oil prices and used-car shortages, underlying inflation is well above 2%.
https://www.wsj.com/articles/prepare-for-an-unsettling-monetary-tightening-cycle-11643290202
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1/30/22, 11:31 AM
Prepare for an Unsettling Monetary Tightening Cycle – WSJ
With unemployment at 3.9% and falling, the economy is at maximum employment,
putting upward pressure on inflation. This is normally where the Fed wants the economy
to be when it finishes tightening, not when it starts.
The Fed is thus so far behind the curve that it needs to get interest rates up almost
irrespective of what incoming data say about the economy or inflation.
The second way this cycle will be different became clear during Chairman Jerome
Powell’s press conference Wednesday: The Fed won’t hold the market’s hand by
committing to a particular path of rate increases.
Under then-Chairman Alan Greenspan, the Fed first used forward guidance in 2004 when
it said rates would rise “at a pace that is likely to be measured.” The goal was to not roil
markets with surprise monetary policy moves. The Fed proceeded to raise rates by a
quarter-point per meeting.
In 2016, then-Chairwoman Janet Yellen used a reformulated version of the phrase:
Economic conditions “will warrant only gradual increases” in rates. The Fed tightened at
every other meeting.
After slashing interest rates to near zero at the start of the pandemic, the Fed promised to
be even more leisurely about raising rates. As recently as last March most Fed officials
thought they wouldn’t start before 2024. They have been revising that schedule ever
since, and with this week’s meeting they virtually abandoned it.
Markets have been assuming the Fed would raise rates at every other meeting as it did in
its last cycle. On Wednesday, though, Mr. Powell refused to ratify that view. “It isn’t
possible to sit here today and tell you with any confidence what the precise path will be,”
he said. “Making appropriate monetary policy in this environment requires humility,
recognizing that the economy evolves in unexpected ways. We’ll need to be nimble so that
we can respond to the full range of plausible outcomes.”
He strongly hinted, though, that the rate path would be steeper, repeatedly noting growth
is stronger and inflation much higher than in 2016 to 2018. He called the risks two-sided
but only mentioned one side: higher inflation.
While the Fed won’t be holding the market’s hand as in the past, forward guidance isn’t
dead. Officials will continue to release projections of interest rates and other economic
variables at every other meeting. But Mr. Powell has previously played down their
https://www.wsj.com/articles/prepare-for-an-unsettling-monetary-tightening-cycle-11643290202
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1/30/22, 11:31 AM
Prepare for an Unsettling Monetary Tightening Cycle – WSJ
significance, and indeed last month’s projection of three rate increases in 2022 is already
obsolete.
It’s been a long time since markets had to grapple with a Fed behind the curve and
unwilling to commit to an interest-rate path. It’s a recipe for unpleasant surprises, more
market volatility and a risk premium in the form of higher bond yields or lower stockmarket valuations.
READ MORE ECONOMIC ANALYSIS
•Venture Capital Becomes a Tech Battleground Between China, U.S. January 26, 2022
•Covid-19, Endemic or Not, Will Still Make Us Poorer January 19, 2022
•Is Inflation a Microeconomic Problem? That’s What Biden’s Competition Push Is Betting January 12, 2022
•China’s Unpredictable, Heavy-Handed Governance Threatens Growth January 5, 2022
Write to Greg Ip at greg.ip@wsj.com
Appeared in the January 28, 2022, print edition as ‘Tightening Will Look Different This Time.’
Copyright © 2022 Dow Jones & Company, Inc. All Rights Reserved
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3/3
2/3/22, 7:35 AM
Raskin Faces Senate Questions Over Views on Climate Change, Regulations – WSJ
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https://www.wsj.com/articles/sarah-bloom-raskin-senate-questions-views-on-climate-change-regulations-11643852661
ECONOMY
Raskin Faces Senate Questions Over Views on Climate
Change, Regulations
Sarah Bloom Raskin and two other Fed nominees are set to testify at their confirmation hearing, a
key hurdle on way to confirmation
Sarah Bloom Raskin is President Biden’s nominee to be the Fed’s vice chairwoman for banking
supervision.
PHOTO: DIEGO AZUBEL/EUROPEAN PRESSPHOTO AGENCY
By Andrew Ackerman Follow
Feb. 3, 2022 5:30 am ET
WASHINGTON— Sarah Bloom Raskin, President Biden’s nominee to become the
government’s top bank regulator, goes to Capitol Hill on Thursday to face lawmakers’
questions about her support for tougher banking rules and for using financial regulation
to address climate change—positions cheered by Democrats but criticized by
Republicans.
Mr. Biden picked Ms. Raskin to serve as the Federal Reserve’s vice chairwoman for
banking supervision. She is set to appear at her Senate Banking Committee confirmation
hearing along with two economists nominated for other Fed board seats: Lisa Cook, a
professor of economics and international relations at Michigan State University, and
Philip Jefferson, a professor and administrator at Davidson College in North Carolina.
https://www.wsj.com/articles/sarah-bloom-raskin-senate-questions-views-on-climate-change-regulations-11643852661
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2/3/22, 7:35 AM
Raskin Faces Senate Questions Over Views on Climate Change, Regulations – WSJ
The three nominees said in their prepared testimony, which was released by the
committee Wednesday, that the Fed must make it a priority to tackle high inflation. They
didn’t comment on Fed officials’ recent signals that they would begin steadily raising
interest rates in mid-March to combat price pressures.
“The spike in inflation we are seeing today threatens to heighten expectations of future
inflation,” Mr. Jefferson said. “The Federal Reserve must remain attentive to this risk and
ensure that inflation declines to levels consistent with its goals.”
SHARE YOUR THOUGHTS
How will the latest slate of nominees affect the Fed? Join the conversation below.
Ahead of the hearing, the U.S. Chamber of Commerce urged Senate lawmakers to
scrutinize Ms. Raskin’s views on climate change and other matters, while 41 oil-and-gas
trade groups pressed lawmakers to oppose her, citing her stances on climate change.
Ms. Raskin hasn’t encountered opposition from banks that helped torpedo the nomination
of Saule Omarova, an academic Mr. Biden tapped last year for a separate post overseeing
national banks. That fight was led by community banks, which have a more favorable view
of Ms. Raskin from her former stints in government.
The American Bankers Association and the Financial Services Forum, which represents
the largest U.S. lenders, issued statements congratulating her on her nomination.
Ms. Raskin, a lawyer, served as a Fed governor and as a top Treasury Department official
during the Obama administration. Before that, she served as Maryland’s state
commissioner of financial regulation. She is a law professor at Duke University and is
married to Rep. Jamie Raskin (D., Md.).
Ms. Raskin’s calls for the Fed to play a more active role in combating climate change have
attracted opposition from Republicans. In a New York Times opinion article in May 2020,
Ms. Raskin was critical of broad-based emergency-lending backstops enacted by the
Treasury and Fed to assist businesses during the pandemic, because she believed they
should have taken steps to prevent lending to oil-and-gas concerns.
“The decisions the Fed makes on our behalf should build toward a stronger economy with
more jobs in innovative industries—not prop up and enrich dying ones,” she wrote.
https://www.wsj.com/articles/sarah-bloom-raskin-senate-questions-views-on-climate-change-regulations-11643852661
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2/3/22, 7:35 AM
Raskin Faces Senate Questions Over Views on Climate Change, Regulations – WSJ
Republicans say addressing climate change goes beyond the Fed’s mandate. “What we do
about climate is a tough set of decisions that need to be hashed out through a politically
accountable process, not the Fed,” said Sen. Pat Toomey of Pennsylvania, the ranking
Republican on the committee, in a Wednesday interview on CNBC.
Banking Committee Chairman Sherrod Brown (D., Ohio) said in a statement before the
hearing that Ms. Raskin “is exactly who we need as Vice Chair for Supervision at the Fed
to protect American families and Main Street businesses from risks in our economy.”
In her prepared testimony, Ms. Raskin said that her role at the Fed would entail working
closely with other central bank officials and banks to identify, analyze and manage their
risks. “The role does not involve directing banks to make loans only to specific sectors, or
to avoid making loans to particular sectors,” she said.
With a closely divided Senate, Mr. Biden needs either the support of all Democrats to
confirm his nominees, or support from some Republicans to overcome holdouts from his
own party.
Moderate Democrats on the Senate Banking panel who may hold the key to Ms. Raskin’s
confirmation have yet to say whether they will support her. Montana Sen. Jon Tester said
Tuesday that he “had a nice meeting with her, and I’ll see how the hearing goes.” He said
Ms. Raskin’s nomination had raised “no red flags as of yet.”
—Andrew Duehren and Amara Omeokwe contributed to this article.
BIDEN’S NOMINEES
Profiles and related coverage of the president’s picks for Federal Reserve positions
•Lisa Cook Studied How Policies Affect Economic Opportunities (Feb. 1)
•Philip Jefferson Has Focused His Research on Monetary Policy and Poverty (Jan. 31)
•Biden Moves to Remake the Federal Reserve (Jan. 14)
•Biden Taps Economists Lisa Cook, Philip Jefferson for Fed Seats (Jan. 14)
•Biden Will Nominate Sarah Bloom Raskin as Top Fed Banking Regulator (Jan. 13)
Write to Andrew Ackerman at andrew.ackerman@wsj.com
https://www.wsj.com/articles/sarah-bloom-raskin-senate-questions-views-on-climate-change-regulations-11643852661
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2/3/22, 7:35 AM
Raskin Faces Senate Questions Over Views on Climate Change, Regulations – WSJ
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2/10/22, 2:04 PM
Rising Inflation Keeps Pressure on Fed to Frontload Rate Increases – WSJ
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https://www.wsj.com/articles/rising-inflation-keeps-pressure-on-fed-to-frontload-rate-increases-11644509103
ECONOMY
Rising Inflation Keeps Pressure on Fed to Frontload
Rate Increases
Federal Reserve officials have signaled they will raise i