Ms. Brainard has been a major proponent of a more active role for the Fed in ensuring that the financial system is prepared for the potential fallout from climate change. She spoke at the Fed’s first climate conference in 2019 and recently focused on the need for climate scenario analysis for banks, which would test their resilience in the face of extreme weather events, change sea ââlevel and other climate related factors. risks.
As the only Democrat left on the Fed’s board in Washington after 2018, Ms Brainard used her position to draw attention to efforts to eliminate banking rules, a process led by Randal K. Quarles, vice president of the Fed for supervision. , which is retiring in December. In the process, she created a rare public disagreement within the consensus-driven central bank, opposing policy changes more than 20 times in 2019 and 2020.
Ms Brainard has often published detailed explanations of her dissent, presenting a roadmap of the changes that have been made and why they might be problematic. For example, when the Fed streamlined its stress testing approach, it supported simplification in spirit – but disagreed with how it was done.
“Today’s rule gives the green light to big banks to significantly reduce their capital buffers, at a time when payments have already exceeded profits for several years on average,” she said, posting an analysis of how she came to that conclusion, one that Mr. Quarles disagreed with.
Her new post won’t give her a more direct say in financial regulation than she did before – governors all have a single vote on regulatory decisions – but she and her dissent dossier could be a resource. for the new person coming to the vice-presidency for work supervision.
Senator Sherrod Brown, Democrat of Ohio and chair of the Banking, Housing and Urban Affairs Committee, said Ms Brainard had “spent her life fighting for a stronger and fairer economy.”
âRight now, as workers finally start to see more power in our economy, we need a vice president who understands that our economic recovery must strengthen our communities and put workers first,â Mr. Brown in a statement.