An anonymous source familiar with the matter said that the Biden administration may allow Federal Reserve Chairman Jerome Powell to continue to lead the central bank. The news was released after three U.S. representatives asked Biden to replace Powell with a central bank leader addressing equality and climate change issues.
Sources say Jerome Powell will be re-elected for a second term
A report written by market watch writer Greg Robb suggests that US President Joe Biden and his administration may allow Jerome Powell to continue to helm the central bank . Rob said that the source came from “analysts who followed Washington closely for Wall Street,” and they “are fairly certain about his renomination now.”
Federal Reserve Chairman Jerome Powell (Jerome Powell) has been leading the central bank during a period when the Fed expanded the money supply in an unprecedented way. Many complaints are directed at Jerome Powell and the Fed’s plans.
Stephen Myrow, managing partner of Beacon Policy Advisors, said in an interview with Market Watch: “My current basic situation is Powell. This is the consensus.” At the same time, Robb also reported that Joe Joe Lieber also agrees with this view. “I think they have a high probability of renominating Powell,” Lieber said on Tuesday. However, the Biden administration may receive complaints from Democrats against Powell.
Three specific U.S. representatives (Alexandria Ocasio-Cortez (AOC), Rashida Tlaib, and Ayanna Pressley) wanted him to solve other problems besides Covid-19. AOC slammed Powell and said: “Under his leadership, the Federal Reserve has taken almost no action to mitigate the risks that climate change poses to our financial system.” The three U.S. representatives hope that someone can expand the monetary system to address equality and the so-called climate. Changes and other issues.
Joe Lieber: “In terms of market reaction, choosing Powell is a slam dunk, and as far as the Senate is concerned, it’s a slam dunk.”
Myrow emphasized to Robb “[Biden now] He has too many plates,” Leber explained, choosing Powell again would be “good politics.” “In terms of market reaction, this is a dunk, and as far as the Senate is concerned, it is a dunk-Powell will Get 80 votes,” Leber explained in an interview.
At the same time, last month’s Consumer Expectation Survey (SCE) report showed that many American households are worried about rising inflation. The indicators in the report released by the central bank this week indicate that SCE respondents expect the inflation rate to jump to 5.2% in one year, and the expected inflation rate in three years to be around 4%.
Biden is likely to choose someone who will continue monetary expansion to meet government goals. Despite some complaints from Democrats, Powell has indicated that he is willing to expand the US money supply, curb interest rates, and maintain the momentum of quantitative easing (QE). Every Fed chairman elected to lead in history is very willing to expand the power of the Fed.
What do you think about Joe Biden’s possible choice of Jerome Powell to run the Fed again for a second term? Please tell us your thoughts on this topic in the comments section below.
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