- Advertisement -spot_img
Friday, December 3, 2021

Two Democratic Senators Oppose Powell as Fed Chair

by Christopher Rugaber

WASHINGTON (AP) – Two Democratic senators said Friday they oppose the nomination of Jerome Powell for a second term as chairman of the Federal Reserve, saying Powell is insufficiently committed to fighting climate change, a An issue that the world’s central banks are increasingly facing.

His protest comes as President Joe Biden is expected to announce within days who he will choose to hold the nation’s most powerful economic position. Many Fed watchers expect Powell to be offered a second term, although Lyle Brainard, a member of the Fed’s board of governors, has emerged as the leading option.

“President Biden should appoint a Fed Chair who … shares the administration’s view that fighting climate change is the responsibility of every policy maker,” Sens. Sheldon Whitehouse from Rhode Island and Jeff Merkle of Oregon said in a prepared statement. “That person is not Jerome Powell.”

Three Democratic senators, including Whitehouse and Merkle, have publicly said they will vote against Powell, a former private equity executive who was promoted to Fed chairman by President Donald Trump and whose term began in February. I was ending. The second is Sen. Elizabeth Warren of Massachusetts, who has called Powell “a dangerous man” for leading the Fed because of his support for loosening some bank rules.

However, Powell enjoys widespread support among Senate Republicans, and would likely have bipartisan support if nominated. He was approved as Fed chairman by a vote of 84-13 in early 2018, with 39 Democrats, including the Whitehouse, voting in favor. Merkle did not vote, as did Vice President Kamala Harris, who was then a California senator.

Brainard is seen as slightly more modest than Powell, meaning she generally favors keeping interest rates low to support more hiring. With inflation running at a three-decade high, his nomination will likely depend more on Democratic support.

On Tuesday, Biden said he would announce the decision within several days.

Whitehouse and Merkle did not say who they would prefer instead of Powell. Brainard, a favorite of many progressives, has expressed a greater willingness than Powell to use the Fed’s tools to address global warming, primarily the monitoring of banks.

Read Also:  LA fixes nearly $2M for homeless engagement teams

Climate change is a difficult issue for the Fed, as the central bank has already come under criticism from Republicans in Congress for the limited steps Powell has taken on the issue. He has formed two committees to analyze the impact of rising temperatures on the financial system, and last December the Fed joined an international group of central banks and financial regulators monitoring the impact of climate change on banks.

Environmentalists warn that inclement weather from global warming will cause major losses for banks and insurance companies. Groups say bank loans for commercial and residential properties near coasts are at risk from rising sea levels and other climate impacts, potentially threatening the financial health of banks.

And lending to oil and gas companies carries additional risk as the world transitions to clean energy, environmentalists say. This suggests that banks should be more cautious before lending to drilling and other companies in the energy sector.

Such concerns have raised objections from conservatives, however, that the Fed may respond by taking steps to discourage bank loans to such companies.

“We think we have a role to play in climate change,” Powell told a news conference earlier this month.

But when it came to issues like regulating what industries banks could lend to, Powell said, “It’s not a decision for bank regulators or any agency. It’s a decision of elected representatives.”

In a speech last month, Brainard said the Fed will likely provide guidance to banks as it monitors how they can better assess climate change risks to their loan portfolios, although he did not provide a timeline. .

“Climate change,” she said, “is projected to have a profound impact on the economy and financial system, and it is already hurting.”

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

Leave a Reply