Jerome Powell’s first term was the most controversial of all Fed chairmen

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But Powell himself is also a controversial figure, and his policy faces attacks from both sides of the aisle. On the right, President Donald Trump, the person who appointed Powell, turned to blame him, calling him a “loser” with “no guts.” At the same time, progressive leaders of the Democratic Party, such as Senator Elizabeth Warren, also turned their backs on Powell.

President Joe Biden appointed Powell on Monday for his second four-year term. For the first time, Powell was easily confirmed in the Senate by 84 votes to 13. But because both sides have raised some objections, this approval may not be a slam dunk consensus.

Powell, 68, came to the Federal Reserve with a long resume. Before turning to public service, he spent most of his career as a lawyer and investment banker. He was the first chairman of the Federal Reserve, served as Assistant Secretary of State and Deputy Secretary of the Treasury under President George HW Bush, and was responsible for policies in areas such as financial institutions and the Treasury bond market.

Joe Biden guides his inner Obama by picking Jerome Powell for the Fed
He was first appointed as a member of the Federal Reserve Board by President Barack Obama in May 2012 to fill the unexpired term, and was re-appointed as a member of the Board by Obama in 2014.
Jerome Powell was officially appointed by President Donald Trump as Governor of the Central Bank. But Trump quickly became one of his harshest critics.
Then Trump came to the White House. In November 2017, 10 months after taking office, he refused to reappoint Janet Yellen to the top position of the Fed, thus reversing the trend of the president reappointing the Fed chairman chosen by his predecessor. Instead, he chose Powell, making him the first Fed chairman who did not become an economist through training in 40 years, and the first Fed chairman without a doctorate. Worked in the field of economics for more than 30 years.
But Trump quickly became one of Powell’s harshest critics.He believes that the Fed should not raise interest rates, even though they are Powell was slightly higher than 1% when he took office and climbed to slightly higher than 2% in 2019. Trump also claimed that Powell has not done enough to stimulate economic activity and push financial markets higher.
Trump’s public criticism Those who think this is not only an attack on the Fed’s policy, but also a concern about the independence of the Fed. Countries that do not allow central banks to operate as independent institutions often suffer from currency devaluation and uncontrolled inflation. Trump’s attack raised questions about whether Powell would feel forced to resign.
On the other side of the aisle, progressive Democratic attacks included Warren accusing him of taking “a lot of action to weaken” oversight of the bank. She said he was “a dangerous man leading the Fed” and could push the economy to the financial cliff again.
As President Biden prepares to re-elect Powell at the Fed, the stock market rises

But Powell’s biggest challenge is to manage the Fed’s response to the economic crisis triggered by the pandemic. As most of the U.S. economy was forced to shut down to comply with public health measures, the number of unemployed reached an unprecedented level.

Most of the relief to the economy comes from Congress, which has passed many stimulus plans to put money in the hands of consumers. But the Fed also helped by lowering interest rates to near zero when they were in the deepest part of the Great Recession, and they swayed the purchase of assets to inject cash into the economy. This helps prevent the collapse of the U.S. financial market.
Jerome Powell attends the House hearing on the Covid-19 crisis in September 2020. The Fed’s response to the pandemic has been at the core of Powell’s first term as Fed Chairman.
Investors liked this, and the stock market rose on Monday with the news of his re-election. But the question has become whether the Fed will stay on natural gas for too long once the economy starts to recover.
Powell’s critics believe that this has contributed to the largest increase in consumer prices in 30 years and has severely pushed up the value of assets such as stocks and house prices-both of which have reached record highs this year.
Powell has always insisted that inflationary pressures are temporary. But this view has been slammed by many people who believe that the Fed has not done enough to fulfill its dual mission: low unemployment and stable prices.
The Fed has also withstood scandals outside of the pandemic. The heads of the Federal Reserve Banks of Boston and Dallas retired early due to strong opposition to personal investment decisions that caused conflicts of interest. In response, the Fed announced last month new rules governing the investment activities of Fed policymakers and senior staff.

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