Reschenthaler and Colleagues Condemn the Nomination of Sarah Bloom Raskin

Statement

Today, Representative Guy Reschenthaler (PA-14), Coal Caucus Chairman David B. McKinley (WV-01), Pennsylvania Representatives Scott Perry (PA-10), Glenn "GT" Thompson (PA-15), Fred Keller (PA-12), Dr. John Joyce (PA-13), Dan Meuser (PA-09), and Mike Kelly (PA-16) led a letter with 40 of their colleagues in the U.S. House of Representatives to President Joe Biden condemning his continued war on U.S. energy producers as evidenced by his nomination of Ms. Sarah Bloom Raskin to serve as Vice Chair for Supervision at the Board of Governors of the Federal Reserve System (the Fed). 

"Ms. Bloom Raskin has openly advocated for de-banking American energy companies and even argued -- at the height of the COVID-19 pandemic -- that the Federal Reserve should have excluded energy companies from its emergency lending facilities," said Rep. Reschenthaler. "With soaring gas and home heating costs, and record-high inflation, it is deeply troubling that President Biden would nominate someone like Ms. Bloom Raskin to serve at the Fed. It is also ironic considering his administration has been promising to export American natural gas to our allies in Europe."

Last month, 41 oil and gas trade associations, which account for seventy percent of the nation's energy production, sent a letter opposing Ms. Bloom Raskin's nomination. Further, the U.S. Senate Banking Committee's Republican staff recently released a report detailing Ms. Bloom Raskin's troubling statements advocating for the Fed to use its statutory mandates to de-bank American energy producers.

"Sarah Bloom Raskin has specifically called for the Fed to pressure banks to choke off credit to traditional energy companies and to exclude those employers from any Fed emergency lending facilities," said Sen. Pat Toomey (R-PA), Ranking Member of the U.S. Senate Banking Committee. "I have serious concerns that she would abuse the Fed's narrow statutory mandates on monetary policy and banking supervision to have the central bank actively engaged in capital allocation. Such actions not only threaten both the Fed's independence and effectiveness, but would also weaken economic growth."

"The Biden Administration has its head in the sand, at a time when inflation and energy costs are sky high, hurting American families, their nomination of Sarah Bloom Raskin reaffirms they are committed to pursuing their disastrous anti-fossil fuel and anti-American agenda," said Rep. McKinley. "Ms. Raskin has a clear history of putting personal beliefs ahead of unbiased guidance and would steer the Fed outside of its statutory mission to achieve stable prices and maximum employment. Her nomination risks the Federal Reserve's impartiality in protecting America's economic interests. Turning the Federal Reserve into a far-left climate policy shop is wrong for America and proves this administration would rather appease their base than do what is best for America's energy and economic future."

"This horrible nomination highlights the Biden Administration's total disregard for hardworking American families who are forced to pay record-high prices for energy all so this inept president can cater to the far-Left's radical agenda," said Rep. Perry.

"From day one, President Biden has stifled Pennsylvanian energy production and his nomination of Sarah Bloom Raskin is deeply concerning for the future of our energy independence," said Rep. Thompson.

"President Biden's nomination of Sarah Bloom Raskin is a continuation of this administration's assault on American energy. Ms. Raskin's anti-fossil fuel agenda proves that she would be incapable of performing her role in an impartial manner, turning the Fed into a partisan tool that picks winners and losers. We must ensure the Fed's independence and Ms. Raskin's nomination runs counter to this goal," said Rep. Keller.

"Energy produced here in the U.S. is critical to our nation's families and businesses. It is essential that any nominee to the Federal Reserve System understands the essential role that our energy providers play in the American economy and in our national security," said Rep. Joyce.

"Since coming to office, President Biden and his Administration have done virtually everything in their power to decimate our domestic fossil fuel production and the well-paying jobs associated with it. This includes discouraging our banks from investing in traditional forms of energy production. We must be responsible in our energy policies and achieve cleaner energy in an economically feasible manner. Attacking our domestic energy supply is clearly not in the interest of the American people as we can see in our skyrocketing gasoline prices. Given Ms. Raskin's past statements and positions, it is clear that if confirmed to this position, she would continue championing this destructive anti-energy policy," said Rep. Meuser.

The letter was also signed by: Rep. Doug Lamborn (CO-05), Rep. August Pfluger (TX-11), Rep. Carol Miller (WV-03), Rep. Bob Latta (OH-05), Rep. Ronny Jackson (TX-13), Rep. Dan Newhouse (WA-04), Rep. Ron Estes (KS-04), Rep. Mike Johnson (LA-04), Rep. Matt Rosendale (MT-AL), Rep. Lance Gooden (TX-05), Rep. Jodey Arrington (TX-19), Rep. Byron Donalds (FL-19), Rep. "Buddy" Carter (GA-01), Rep. Lauren Boebert (CO-03), Rep. Yvette Herrell (NM-02), Rep. Greg Steube (FL-17), Rep. Louie Gohmert (TX-01), Rep. Mike Carey (OH-15), Rep. Alex Mooney (WV-02), Rep. Tom Tiffany (WI-07), Rep. Blake Moore (UT-01), Rep. Ralph Norman (SC-05), Rep. Bruce Westerman (AR-04), Rep. Morgan Griffith (VA-09), Rep. Beth Van Duyne (TX-24), Rep. Pete Stauber (MN-08), Rep. Andrew Clyde (GA-09), Rep. Don Young (AK-AL), Rep. Chip Roy (TX-21), Rep. Rick Crawford (AR-01), Rep. Paul Gosar (AZ-04), Rep. Jeff Duncan (SC-03), Rep. Jim Baird (IN-04), Rep. Andy Biggs (AZ-05), Rep Mike Kelly (PA-16), Rep. Warren Davidson (OH-08), Rep. Chris Stewart (UT-02), Rep. Tom McClintock (CA-04), Rep. Cliff Bentz (OR-02), Rep. Dan Bishop (NC-9), and Rep. Drew Ferguson (GA-03).

The full text of the letter can be read here and below:

Dear President Biden:

We write to express our concerns with your anti-American energy agenda, including your nomination of Sarah Bloom Raskin to serve as Vice Chair for Supervision at the Board of Governors of the Federal Reserve System. Your energy policies have already led to record-breaking prices at the pump, higher home-heating costs, and devastating inflation. The last thing American families need is a Green New Deal at the Federal Reserve.

One of our country's greatest strategic advantages is our stock of natural resources. Unlike other nations, the U.S. is positioned for energy independence because of our massive reserves of coal, oil, and natural gas. These abundant supplies keep energy costs low for residential, commercial, and industrial consumers of electricity, heating, and transportation fuels. They also allow us to assist our allies and strategic partners against foreign aggression like the kind we are currently witnessing with Russia.

Importantly, millions of Americans earn a living from our domestic energy industry. Their livelihoods depend on their employers' ability to access credit for development, expansion, and routine business operations like meeting payroll.

That's why we are deeply troubled by your decision to nominate Ms. Raskin, who would wield tremendous regulatory and supervisory authority that could be weaponized to discourage or prohibit banks from lending to or investing in American energy. Her consistent advocacy for the Federal Reserve to de-bank energy companies raises the troubling prospect that she would do just that. After describing the energy sector as a "dying industry," she argued--at the height of the COVID-19 pandemic--that the Federal Reserve should have excluded energy companies from its emergency lending facilities.

Ms. Raskin has also urged financial regulators to adopt "policies that will allocate capital and align portfolios toward sustainable investments that do not depend on carbon and fossil fuels." She endorsed particular regulatory measures, which are not enumerated in statute, to achieve these objectives. These include "climate stress testing" and "portfolio limitations or concentration limits" for assets deemed to be "high-emission." Such actions would irreparably politicize the Federal Reserve and destroy what remains of its credibility and independence.

It is ironic that at a time when your administration is working to send American natural gas to our allies in Europe, you are also promoting an individual who supports cutting off the very same suppliers' access to the banking system. We urge you to consider American workers and families, as well as our allies abroad, and end your war on our nation's energy producers.

Source