By Yasin Ebrahim

Investing.com: The Senate has confirmed Jerome Powell as Federal Reserve Chairman. Many are watching closely to determine if Powell can control inflation and avoid a recession. 

In a rare display of bipartisanship, the Senate voted 80-19 for Powell’s nomination. This is the fastest pace of inflation in 40 years and has gone beyond political borders.

After President Biden stated last year that he supported the reappointment, Powell’s renomination was expected.

Under Powell’s stewardship, the Fed was quick to pump liquidity into the economy by cutting rates, and resuming quantitative easing to cushion the economy from the pandemic impact.

Many argue that the central banks has not been quick enough to remove its emergency stimuli that played a part in driving inflation up to four-decades highs. Some fear that the Fed will slow down the economy too much by tightening its monetary policies. 

In May, the Fed raised rates 50 basis points and indicated that it will begin to reduce its balance sheet by June. Powell suggested that additional 50 basis points might be necessary at future meetings.