"Now more than ever, the United States must have policy leaders and economic experts who are focused on the most pressing issues facing the American people and our nation - specifically rising inflation and energy costs," Manchin, D-W.Va., said.
"I have carefully reviewed Sarah Bloom Raskin’s qualifications and previous public statements. Her previous public statements have failed to satisfactorily address my concerns about the critical importance of financing an all-of-the-above energy policy to meet our nation’s critical energy needs," Manchin added. "I have come to the conclusion that I am unable to support her nomination to serve as a member of the Federal Reserve Board."
Raskin now would need at least one Republican senator to support her in order to be confirmed. But that appears highly unlikely as Republicans universally opposed her in the Senate Banking Committee. They boycotted the committee business meeting where she was supposed to come up for a vote last month, denying Democrats a quorum to hold the vote.
Manchin is not on the Banking Committee. But in the 50-50 Senate, he wields an effective veto on any party-line votes.
Nevertheless, the White House says it isn't pulling Raskin's nomination. It said she "earned widespread support in the face of an unprecedented, baseless campaign led by oil and gas companies that sought to tarnish her distinguished career."
"We are working to line up the bipartisan support that she deserves, so that she can be confirmed by the Senate for this important position," the White House said.
A spokesperson for Senate Banking Committee Chairman Sherrod Brown, D-Ohio, also said he is aiming to secure bipartisan backing for Raskin.
"Senator Brown is working to move forward Ms. Bloom Raskin’s nomination with bipartisan support, as Ms. Bloom Raskin has earned twice before," the spokesperson said.
Senate Banking Committee Ranking Member Pat Toomey, R-Pa., meanwhile urged Brown to move ahead with a slate of four other Biden Federal Reserve nominees that Republicans say they're prepared to vote for.
"As Senator Manchin suggested today, Ms. Raskin’s past advocacy for having the Federal Reserve allocate capital and discriminate against traditional energy companies would not only politicize the Fed, but weaken economic growth at a crucial moment in history," Toomey said.
"As we’ve repeatedly said, Republican members of the Banking Committee are willing to vote on the other four Fed nominees. I hope Chairman Brown will immediately move forward with scheduling a vote for this week," Toomey added.
At her hearing, Republicans sharply criticized Raskin, alleging she supported using government levers to direct investment away from fossil fuels and toward green energy. Raskin emphasized that she would be unbiased and professional in her role at the Fed.
Republicans also criticized Raskin for alleged influence-peddling, which the White House pushed back against sharply. "Senator Toomey has waged a baseless smear campaign for weeks against an exceptionally well-qualified nominee without providing a single scrap of evidence to support his false claims," White House spokesman Michael Gwin said last month.
But since Raskin's initial hearing, the Russia-Ukraine war broke out, and global energy prices spiked as a result. That put the importance of American domestic energy production into sharp relief, according to experts.
Manchin, meanwhile, emphasized the Federal Reserve's nonpolitical mission, which Republicans argued in her hearing she would be unlikely to follow.
"The Federal Reserve Board is not an institution that should politicize its critical decisions. This is a 10-year term to perhaps the most important independent body that is tasked with ensuring the stability of the American economy," Manchin said. "At this historic moment for both the United States and the world at large, it is imperative the Federal Reserve Board preserves its independence and steers clear of any hint of partisanship."
FOX Business' Edward Lawrence contributed to this report.