Brainard also won praise from Brown. While Toomey noted his concerns with Brainard’s regulatory policies, her nomination to Vice Chair is unlikely to draw fierce GOP opposition, especially since she is already a voting member of the Board.
Three Federal Reserve Board Vacancies to Go
The White House press release
gave an early December timeline to name nominees who will fill three vacancies on the Fed’s Board of Governors, which includes an open seat, the seat Randy Quarles will vacate at yearend, and current Vice Chair Richard Clarida’s term that expires in January 2022.
The administration also has yet to name a new Vice Chair of Supervision to serve as the Fed’s lead banking regulator. The position has been vacant since Quarles’s term as Vice Chair expired in October. There was speculation that Brainard would be selected for the post before being nominated at the Vice Chair of the Board. Biden is expected to announce his plans on the Vice Chair of Supervision along with additional nominees in early December.
The new slate of nominees could tip the balance of the Board to Democratic-leaning from the current dominance of Trump nominees. While the effect on monetary policy may be limited, the Board’s role as a financial regulator could lead to additional regulation and higher bank capital requirements given a majority of Biden/Obama appointees.