Sarah Bloom Raskin has withdrawn her nomination to serve as Vice Chair for Supervision at the Federal Reserve, a powerful regulatory role over the nation's banks.

The move came one day after moderate Sens. Joe Manchin, D-W.Va., and Susan Collins, R-Maine, announced they would not support her confirmation, effectively dooming her in the evenly divided Senate.

The news was first reported by The New Yorker, which obtained a letter from Raskin to President Joe Biden explaining her withdrawal.

"While my prior presidential nominations in 2010 and 2014 were greeted with overwhelming bipartisan support and Senate confirmation, this time, beginning even before you announced my nomination, I became the subject of relentless attacks by special interests, culminating weeks ago in the boycott of a routine Senate Banking Committee vote to advance your Federal Reserve Board nominees," she wrote in the letter obtained by The New Yorker.

"Rather than simply voting against the nominees if they disapproved, the Republicans on the committee held hostage not only my nomination but those of Chair Jerome Powell, Governor Lael Brainard, and professors Lisa Cook and Phillip Jefferson," she added.

Republicans on the Senate Banking Committee have been holding up the nominations of all five of Biden's picks to serve on the Federal Reserve, including the re-nomination of Fed Chair Jerome Powell, because of their opposition to Raskin. 

Raskin, a professor at Duke University Law School, has called for a more aggressive focus on addressing the financial risks of the climate crisis, which has rankled Republicans.

"Had the boycotting senators simply challenged my belief in the need to integrate climate-based risks and costs into the financial regulatory apparatus, I would have welcomed the opportunity for this important discussion," Raskin wrote. "My experience as a financial regulator and lawyer have taught me to value serious policy debate and dialogue in the process of developing the best regulatory policies within the boundaries of law. But rather than a productive and informed discussion about climate and financial risk, the country was treated to diversionary attacks on my ethics and character."

"The Senate confirmation process is now stuck in this polarized condition, depriving us of the social cohesion and professional expertise we need to have a future economy that is strong, resilient and inclusive," Raskin wrote in the letter. "We are entering an era of financial economic war, inflation, and climate transition. These risks cannot be dismissed for political reasons, certainly at this moment when the possibilities of mitigating them still exist."

"There is hard and urgent work ahead for the Federal Reserve," Raskin wrote. "If I step away from this confirmation process, there can be no excuse left for a continued boycott of the Constitution’s 'advice and consent' process and the Senate’s corresponding refusal to attend to our nation’s real economic needs. With a heavy heart, I therefore hereby withdraw my candidacy."

In his statement explaining his opposition to Raskin's nomination, Manchin said that "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."

"I have come to the conclusion that I am unable to support her nomination to serve as a member of the Federal Reserve Board," he added.

“She’s a wonderful person. We had a nice conversation,” the West Virginia Democrat told reporters. ”Sometimes you just can’t get there.”

Manchin previously opposed Biden's nomination of Neera Tanden to serve as Director of the Office of Management and Budget, citing "overtly partisan statements" she made in the past, which also rankled Republicans and led to universal opposition from the Senate GOP. Her nomination was later withdrawn, and she later joined the administration in a different role.

Without Manchin's support, Democrats would have needed at least one Republican to vote with them in order to confirm Raskin to serve as Vice Chair for Supervision at the Federal Reserve, a powerful regulatory role over the nation's banks.

But Sen. Collins said Monday that "there is not a path forward" for Raskin, and Alaska Republican Sen. Lisa Murkowski calling her a "flawed nominee" in an interview with POLITICO, that Republican support seemed unlikely.

In a statement on Tuesday, President Joe Biden condemned the fact that Raskin was "subject to baseless attacks from industry and conservative interest groups" despite broad, bipartisan support in previous confirmation hearings.

"Unfortunately, Senate Republicans are more focused on amplifying these false claims and protecting special interests than taking important steps toward addressing inflation and lowering costs for the American people," the president wrote.

"I am grateful for Sarah’s service to our country and for her willingness to serve again, and I look forward to her future contributions to our country," he wrote, before urging the Senate to swiftly confirm Biden's remaining four nominees.

"I urge the Senate Banking Committee to move swiftly to confirm the four eminently qualified nominees for the Board of Governors — Jerome Powell, Lael Brainard, Philip Jefferson, and Lisa Cook — who are still waiting for an up-or-down vote," Biden said. "This group has the experience, judgment, and talent necessary to lead the Federal Reserve at this critical moment in our economic recovery, and the Senate should move their nominations forward."

Last week, POLITICO reported that Republicans offered to advance all four of Biden's other nominees save for Raskin – and Manchin reportedly urged his party to take the deal.

"If they’re willing to move four out of five? Take it and run with it," the West Virginia moderate told POLITICO. "It’s a win. I’ll take a win any time I get it."

In addition to Raskin and Powell, Biden nominated Lael Brainard to serve as Vice Chair of the Fed and Lisa Cook and Philip Jefferson to serve on the Board of Governors.

If confirmed, Cook would be the first Black woman on the board in its history, while Jefferson would be just the fourth Black man to serve.

Raskin is married to Rep. Jamie Raskin, the lead impeachment manager during former President Trump's second impeachment and a member of the Select Committee investigating the Jan. 6 riot at the U.S. Capitol.