The U.S senate confirmed that Jerome Powell would be chairing the Federal Reserve Board for another four years in his second term. He secured this position on May 12, 2022, after the members of the Senate cast an 80-19 affirmative vote. Despite the expiry of his first term in February 2022, Powell has not left his office and has been performing his duties as usual. He will run the office until 2026 when the current term expires, but he will remain an FRB member until 2028.
This comes after President Joe Biden nominated Phillip Nathan Jefferson, Lisa Denell Cook, and Lael Brainard to fill the position. Michael Barr also secured a nomination to be an FRB member and the vice chairperson, but the Senate Committee on Banking, Housing, and Urban Affairs will confirm this in its next hearing on May 19, 2022.
Powell’s confirmation as the Fed chair happened during high inflation, and Americans are feeling its sting. In his recent speech, President Biden praised Powell’s confirmation and declared his concerns about the rising inflation.
“I have made it clear that tackling inflation is my top domestic priority,” said President Biden. He added that he was pleased with the Senate’s attempts to combat inflation and keep it under control through their agreement on his chosen nominees. The President further stated that they still had more to do in ensuring the Fed Board had enough members to fill it.
In an attempt to reduce the high inflation, the Federal Reserve, responsible for formulating the country’s monetary policy, continues to ramp the interest rates upwards. According to Janet Yellen, the Treasury Secretary, the Fed can put up successful inflation control measures leading to stable household financials and job market without stirring a recession.
Jerome Powell faced challenges with two global crises during his first term when the Covid pandemic struck, followed by the highest inflation rates witnessed in 40 years. He is 69 years old, with vast experience as an investment banker.