Biden, US President, "Trusts Fed Chair Powell... Listening to Various Opinions"

Senator Elizabeth Warren Criticizes Powell Repeatedly: "He Is a Failed Leader"

Jerome Powell, Chair of the U.S. Federal Reserve (Fed) [Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] U.S. President Joe Biden said he trusts Jerome Powell, Chair of the Federal Reserve (Fed), Bloomberg reported on the 5th (local time).

Before his visit to Michigan that day, President Biden told reporters, "So far, it's a yes (to Powell's renomination). However, I am currently listening to various opinions."

President Biden's remarks came amid strong opposition to Powell's renomination from Democratic Senator Elizabeth Warren.

Senator Warren also appeared before the Senate that morning, criticizing Powell for failing as a leader by pointing out that Fed officials traded stocks during the COVID-19 situation. Recently, Robert Kaplan, President of the Dallas Fed, and Eric Rosengren, President of the Boston Fed, announced their intention to resign amid stock trading controversies. Senator Warren pointed out that the stock trading by regional Fed presidents has damaged the Fed's integrity and trustworthiness in Chair Powell.

At a Senate Banking Committee hearing on the 28th of last month, Senator Warren officially stated her opposition to Powell's renomination, accusing him of loosening Wall Street bank regulations too much and calling him a dangerous person. Known for her strong emphasis on bank regulation and nicknamed the "Wall Street Grim Reaper," it is uncertain whether Senator Warren will be able to unseat Powell as she wishes. President Biden has expressed trust in Powell, and White House advisors are reportedly advising President Biden to renominate Powell.

That day, Bloomberg reported that Powell had secured the support of a majority of Republican members of the Senate Banking Committee. Senator Mike Crapo (Idaho) said he would support Powell if President Biden renominated him. There are 12 Republican members on the Senate Banking Committee, and Senator Crapo was the seventh to express support for Powell. It is also known that a considerable number of Democratic members support Powell's renomination.

Powell's term expires in February next year. The Fed Chair must be confirmed by the Senate Banking Committee before the Senate vote following the presidential nomination.

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