President Biden decided to renominate Jerome H. Powell as the Federal Chair of Reserve for another four years. This comes after Powell serving in the same capacity during the Trump administration and aligning himself with Republican political ideology.
Both Biden and Powell vow to keep inflation low and employment high
With yet another nomination, Jerome H. Powell’s Senate confirmation process has become streamlined, as he enjoys widespread support from Republican ranks as well.
President Biden picks Jerome Powell for another term as Federal Reserve chair despite strong opposition from some progressive Democrats https://t.co/bCO5CCj7j5
— CNN Breaking News (@cnnbrk) November 22, 2021
While progressives criticized Biden’s decision to renominate Powell, their voices are likely to be calmed down. This will come with the appointment of Lael Brainard, progressives’ envisioned candidate to replace Powell, as a Federal Vice-chair.
Biden acknowledged the possible resistance from some elements about Powell’s nomination, considering he was the choice of Donald Trump.
One of the primary reasons for Biden to stick with Powell is they each vow to keep the interest rate low while supporting maximum employment for the economy.
Amid the rising inflation, the nomination of the Federal chair became even more significant. Biden has admired the officers of Trump’s era, saying the need for people with integrity and character is more important than ever today to keep the US on track.
Inflation in the country has been a hot issue lately, as labor shortages continue increasing throughout America, amid the dwindling supply chain crisis.
The central bank is mandated to keep employment up to the maximum possible extent while keeping inflation low.
Biden failed to bring all Democrats together on Powell
Reportedly, Biden consulted with both moderates and progressives before the nomination. The president took their input into consideration regarding various matters, including their views on inflation and climate change.
However, Biden did not get all Democrats on the same page. For instance, Elizabeth Warren lambasted Powell, saying he’s “a dangerous man,” suggesting she would not vote in his favor.
On the other hand, Biden touted his move, saying economic growth should be felt equally by everyone and must not be concentrated in rich people’s hands.
America needs steady, independent, and effective leadership at the Federal Reserve. That’s why I will nominate Jerome Powell for a second term as Chair of the Board of Governors of the Federal Reserve System and Dr. Lael Brainard to serve as Vice Chair of the Board of Governors.
— President Biden (@POTUS) November 22, 2021
Jerome Powell acknowledged the challenge ahead, saying American families have been suffering from high inflation. Powell also said the Federal Chair will use its powers to create a robust labor market and bring prices down.
However, Vice President Kamala Harris is still not in favor of Biden’s decision. After her Monday speech addressing the healthcare workers’ shortage in some communities, a reporter asked Harris about the rationale behind nominating Powell to the Federal Chair.
However, the vice president did not respond to the question and continued walking out of the event. It should be noted Harris was one of the only 13 senators who voted against the nomination of Powell back in 2018.
This suggests her apparent disapproval of the nominee’s economic policies.
