Biden picks Fed bank regulator, adds first Black woman to board

U.S. President Joe Biden picked Sarah Bloom Raskin to be the Federal Reserve’s top banking regulator and Lisa Cook and Philip Jefferson to be governors, completing his overhaul of leadership at the U.S. central bank.

U.S. President Joe Biden plans to nominate Sarah Bloom Raskin to be the Federal Reserve’s top banking regulator and economists Lisa Cook and Philip Jefferson to be governors, people familiar with the decision said Thursday, completing his overhaul of leadership at the U.S. central bank.

The selections of Cook, who would be the first Black woman on the Fed’s board, and Jefferson, who would be the fourth Black man, keep a Biden promise to improve diversity at the central bank If all the picks are confirmed by the Senate, it would mark two firsts for the seven-member panel: four women serving together, and two Black governors at the same time.

The nominations also would add experts focused on a broad recovery in the jobs market as officials seek to contain the hottest inflation in nearly four decades.

The three potential new Board members are in a position to join Jerome Powell -- whom Biden chose in November for another four years as chair -- and current Governor Lael Brainard, who the president aims to elevate to vice chair. Both Powell and Brainard testified this week in confirmation hearings before the Senate Banking Committee.

The newly configured Fed Board faces a challenging year ahead with the ongoing pandemic threatening the economic recovery and soaring inflation. Investors expect the Fed to start raising interest rates off near-zero levels in March.

While making history with Cook’s nomination, the selection of Raskin to the vice chair for supervision position means the top three positions on Biden’s Fed would still all be held by White officials.