Biden chooses New York Fed official for Treasury financial markets job

(Bloomberg) – President Joe Biden will appoint Joshua Frost, a longtime New York Federal Reserve official, as the Treasury Department’s assistant secretary for financial markets – a resource person for debt management and market surveillance and regulation.

Biden announced his choice for the job on Tuesday in a statement. Frost, who works at the Treasury this year as deputy assistant secretary for financial markets, is expected to be confirmed by the Senate to take office in this new role.

Frost could play a central role in an ongoing review of the $ 22 trillion Treasury securities market that was sparked by its brief but alarming collapse at the start of the Covid-19 pandemic in March 2020.

Read more: Treasury plans to cut quarterly bond sales from November

Under Secretary of Home Finance Nellie Liang, reportedly boss of Frost, expressed interest in potential reforms to the structure of the treasury bill market before joining the department earlier this year. A group of external experts led by former secretary Timothy Geithner also recommended reforms in a recent report.

Secretary Janet Yellen in March identified the review of market vulnerabilities as one of the three priorities of the Financial Stability Supervisory Board this year.

Frost, who joined the New York Fed in 1998, helped oversee the implementation of the Fed’s quantitative easing policy in the early 2010s – buying hundreds of billions of dollars in treasury securities for keep interest rates low and try to stimulate a recovery from the global financial crisis. .

Response to the pandemic

He was also co-chair of the Fed committee created by the Dodd-Frank Act to oversee large financial institutions and oversaw the two business credit facilities created to respond to the coronavirus pandemic.

Frost would head an office of around 50 employees and advise Treasury Secretary Janet Yellen on matters of global finance, financial markets and financial regulation. The post engages with the Treasury Borrowing Advisory Committee, which provides the government with recommendations and observations on the strength of the economy and technical issues of debt management.

If confirmed, Frost will be the first person to serve as deputy secretary since the Obama administration. Former President Donald Trump’s candidate for the post – Treasury official Kipp Kranbuhl – has never been confirmed by the Senate, although Seth Carpenter, now Morgan Stanley’s chief world economist, and Daleep Singh, now in charge of the New York Fed, both held this position. on an interim basis. The chairman of the Securities and Exchange Commission, Gary Gensler, held this position during the Clinton administration.

Frost’s appointment will come as the Treasury seeks to fill a number of key leadership roles. The Biden administration has still not appointed an undersecretary for international affairs, after economist Heidi Crebo-Rediker was excluded from consideration, while other candidates await confirmation from the Senate.

(Updates with announcement in second paragraph.)

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