Financial Watch

Lael Brainard won Senate confirmation on Tuesday as the Treasury Department’s top financial diplomat, giving her a key role in U.S. efforts to persuade China to adopt a more flexible currency.

The Senate gave its blessing on a 78-19 vote, a day after Brainard, who served in the Clinton White House, cleared a Republican procedural hurdle.

Nineteen Senate Republicans joined 57 Democrats and two independents in confirming Brainard as Treasury Department’s under secretary for international affairs. Her nomination was stalled for more than a year because of objections by some Republicans.

The timing of the vote is significant as it occurs before meetings this week of the Group of 20, the smaller Group of Seven and the International Monetary Fund and World Bank.

Brainard’s nomination was slowed by a probe into her taxes. She faced scrutiny over deductions made for a home office, late payments of some property taxes and verification of legal status for household employees.

As well as holding a key position in talks with China, Brainard would help shepherd U.S. official positions through the global lending agencies that are being urged to take on a stronger role in monitoring global currency policies.

She will help Treasury prepare for the annual meeting in Beijing of the Strategic and Economic Dialogue, which occurs at a sensitive time as the Obama administration tries to keep momentum going for China to let its currency, the yuan, appreciate.