Powell’s second term as Fed Chairman has been approved by the US Senate.
The U.S. Senate approved Powell, who is nominated for a second term as Fed Chairman, by 80 votes to 19.
The US Senate has approved Jerome Powell, who has been nominated by President Joe Biden for a second term as Chairman of the US Federal Reserve (Fed). At a time when the Fed was battling high inflation, Powell’s candidacy for a second 4-year term as chairman of the bank was approved by 80 votes to 19.
US President Biden, in a written statement after the Senate approved Powell, reiterated that the fight against inflation is his top priority. Biden said, “I’m pleased to see the Senate move forward on my agenda to contain inflation by approving my nominations for the Fed.”
HIS TERM EXPIRED IN FEBRUARY
Powell, who became Fed Chairman in 2018 after the nomination of former US President Donald Trump, expired in February.
On November 22, 2021, US President Joe Biden nominated Jerome Powell as Fed Chairman and Lael Brainard as Vice Chairman.
Powell, who studied politics at Princeton University and law at Georgetown University, began his professional career in law, but transferred to the finance industry a few years later.
Prior to public service, Powell worked as a lawyer and investment banker in New York City, as George H.W. He served as the undersecretary of the US Treasury Department during the Bush administration.
Powell was nominated by then-US President Barack Obama to the Fed’s Board of Directors in 2011.
GOT THE SUPPORT OF BOTH PARTIES
Jerome Powell gained broad support from both parties with his resistance to Trump’s pressures on interest rates when the US economy was strong, and his decisions to stabilize financial markets with the onset of the Covid-19 epidemic.
Powell, who brought interest rates closer to zero and implemented emergency asset purchase programs in March 2020 to support the markets at the beginning of the Covid-19 epidemic, led the Fed to change its monetary policy strategy by targeting “average” 2 percent inflation during the Covid-19 crisis.
Powell’s re-nomination was largely welcomed by investors, who hoped there would be no major change in bank management as it steers the economic recovery from the Covid-19 pandemic.