ANI
23 Nov 2021, 07:07 GMT+10
Washington [US], November 23 (ANI/Sputnik): The Federal Reserve needs stable and independent leadership to navigate a post-pandemic world and Jerome Powell would be the right apolitical candidate to continue heading the US central bank, President Joe Biden said.
"Now some will no doubt ask why I'm renominating Jay, when he was the choice of a Republican predecessor? Why I'm not picking a Democrat?" Biden said during a press conference on Monday. "Put directly at this moment of both enormous potential and enormous uncertainty for our economy, we need stability and independence. At the Federal Reserve, Jay has proven the independence that I value in the Fed chair."The renomination of Powell, a Republican appointed by former president Donald Trump, comes after one of the most tumultuous periods ever for both, the Federal Reserve and the US economy emerging from the coronavirus pandemic and the recession triggered by the measures implemented to address it.
Powell's reappointment had been opposed by the far-left wing of Biden's Democratic party establishment that has criticized Powell for lax regulations at the US central bank.
Biden acknowledged the nurturing role played at the Federal Reserve by Powell and Lael Brainard, a governor at the central bank whom the US president elevated to the post of vice chair. Both will have to go through Senate hearings to confirm the president's decision.
Biden particularly spoke about Powell's determination to defy former president Trump's attempts to influence the Fed chair's job or politicize the central bank altogether.
"In the last administration, he stood up to unprecedented political interference and, in doing so. successfully maintained the integrity and credibility of this institution," Biden said. "It's just one of the many reasons why Jay gets support from across the political spectrum."Powell had repeatedly turned down Trump's suggestion to employ zero interest rates for the United States, even before the COVID-19 breakout, to boost growth. Since the pandemic began, however, the Fed has held rates at near zero, saying such support was required for the beleaguered economy.
Notwithstanding Biden's praise, Powell and the Federal Reserve have taken intense criticism over inflation running at its highest levels in over 30 years in the US economy, which has been caught up in supply chain bottlenecks in the aftermath of the COVID-19 crisis.
The US economy shrank by 3.5% for all of 2020 due to shutdowns and other pandemic measures. Growth this year has been spotty, with an annualized 3.5% expansion in the first quarter, 3.6% in the second and 2% in the third.
In March, the Federal Reserve announced it expected a 6.5% economic expansion for all of 2021 and has not changed its target despite the uneven growth in the past three quarters. The problem the central bank continues to face is inflation as wages and the prices of almost everything have soared from the lows of the pandemic.
Powell and the Federal Reserve have also been criticized because of an ethics scandal where several officials of the central bank were found to have engaged in trading stocks at a time when the institution was implementing policies aimed at boosting markets. Powell himself disclosed that he owned municipal bonds, which the Federal Reserve was also was buying, and he also bought and sold funds tied to the broad stock market indexes. (ANI/Sputnik)Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationPatna (Bihar) [India], July 6 (ANI): Bihar Governor Arif Mohammed Khan visited the residence of businessman Gopal Khemka, who was shot...
The billionaire has vowed to give freedom back to the people and accused the US elites of bankrupting the nation ...
Patna (Bihar) [India], July 5 (ANI): Jan Suraaj Party founder Prashant Kishor on Saturday raised concerns over the rising crime incidents...
Patna (Bihar) [India], July 5 (ANI): BJP leader Ravishankar Prasad on Saturday said he was 'saddened' over the murder of businessman...
Patna (Bihar) [India], July 5 (ANI): Rashtriya Janata Dal (RJD) leader Tejashwi Yadav on Saturday met the family of businessman Gopal...
Patna (Bihar) [India], July 5 (ANI): Union Minister of State for Home Affairs Nityanand Rai has hit back at opposition parties in Bihar...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...
(Photo credit: Patrick Gorski-Imagn Images) Yohel Pozo hit a pinch three-run homer to lift the visiting St. Louis Cardinals past...
(Photo credit: Kamil Krzaczynski-Imagn Images) The Chicago Cubs set a franchise record by bashing eight home runs in a single game...
(Photo credit: Jayne Kamin-Oncea-Imagn Images) The Los Angeles Dodgers had a full night Wednesday, watching Clayton Kershaw record...