‘Up to the president’ on Fed chief pick By Reuters
© Reuters. FILE PHOTO – Jerome Powell, Federal Reserve Chairman, speaks during a Senate Banking, Housing and Urban Affairs Committee hearing about the CARES Act, in Washington, DC, U.S.A, September 28, 2021. Kevin Dietsch/Pool via REUT
(Reuters] – U.S. Treasury Secretary Janet Yellen refused to answer Tuesday’s question about whether she supports a reelection of Federal Reserve Chair Jerome Powell to a second term. She said it was upto President Joe Biden.
CNBC interview: Yellen said that she believes the U.S. central banking will make good decisions when guiding the economy through the crisis caused by coronavirus.
When asked if she would support a renomination for Powell, Yellen stated that it was up to him to decide. “I’m sure he will consult many people, take in a lot of evidence and views and then make an informed decision.
Bloomberg reported in August that Yellen told White House senior advisers she backed Powell for a second term.
Former President Donald Trump first appointed Powell as Fed Chair. His current term expires February and there has been no announcement by the Biden Administration.
An influential voice in the Democratic Party’s progressive wing, Senator Elizabeth Warren from Massachusetts, publicly opposed a second term to Powell and called him a “dangerous person” to run the Fed.
Tuesday’s critique was expanded by Powell, who she blamed not only for Powell’s track record of regulating banks, sondern also for how he handled ethical lapses in the personal finances of fellow Fed policymakers.
Warren is part of the Senate banking committee, which oversees the central banks.
In 2020, two of 12 Fed regional bank presidents actively traded securities as part of the Fed’s unprecedented response to the threat to the economy from the pandemic. They have both announced their resignations.
Powell initiated a comprehensive ethics review of the personal investments of top Fed officials. The Fed’s Internal Watchdog was asked to examine all transactions made by senior Fed officials in order to make sure they are compliant with current ethics laws.
Yellen also was asked if she believed the Fed had made good economic decisions given this unexpectedly high level of inflation that many critics have questioned its loose policy stance.
“I have faith in the Fed to make right decisions,” said Yellen. She served one term before Powell as Fed Chair.
“We have been hit with an unusual shot. We are now almost six million jobs below where we were before the pandemic. This means that many people still require jobs. However, she stated that it is becoming increasingly difficult for many businesses to hire.”
“We’ve seen remarkable shifts in demand patterns… and the Fed knows that these are being addressed – there have been supply disruptions that have caused inflation. They are temporary, I think. But that doesn’t necessarily mean that they will disappear over the next few months.
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