According to reports, Biden is contemplating hiring a law professor, the president of the Federal Reserve, and a former head of the Consumer Financial Protection Bureau to replace three seats on the Federal Reserve.
Bloomberg on Wednesday reported that U.S. President Joe Biden is considering qualified candidates such as Federal Reserve Bank of Atlanta President Raphael Bostic, former Consumer Financial Protection Bureau Director Richard Cordray, and Duke University law professor Sarah Bloom Raskin to take over positions from Fed board members leaving in early 2022.
Others being considered are Karen Dynan, a former Treasury Department official under President Barack Obama, and Valerie Wilson, head of the Economic Policy Institute’s Program on Race, Ethnicity, and the Economy.
After the resignation of Richard Clarida, President Trump has already indicated that he will nominate Jerome Powell for a second four-year term as Fed chair, beginning in February. Governor Lael Brainard will serve as vice-chair. Powell and Brainard joined the board of governors of the Federal Reserve in 2012 and 2014, respectively. In November, Biden indicated that he will nominate replacements with the goal of “increasing the diversity of the Board’s makeup.”
In the group of seven governors sitting at the Federal Reserve, there is now one vacancy, although Randal Quarles retired effective December 31, and Clarida is slated to leave in January 2022. Bostic, Cordray, and Raskin, if nominated by Biden, would have to be confirmed by the Senate and would presumably serve 14-year terms.
A dramatic shift in the composition of one of the country’s key financial regulators might have an influence on how the government views cryptocurrency. Powell has spoken on the possibility of a digital dollar during his term at the Fed, while Quarles stated that federal agencies must study the best regulatory strategy before establishing a framework to manage the crypto market.