Fed Chair Jerome Powell's 'complicated' road to renomination


President Biden must select a new Federal Reserve chair, and the process may have grown a bit more complicated, reports Bloomberg. What was once an easy, almost shoo-in renomination of current Chair Jerome Powell has "morphed into a problem for the White House" amidst strong criticism from Sen. Elizabeth Warren (D-Mass.) and ire from progressive groups over trading activity.
"The growing trading scandal at the Fed definitely impacts Powell's renomination," but "whether it will be enough to derail it remains unseen," said Aaron Klein, a former deputy assistant secretary at the Treasury Department under the Obama administration. The Fed is under fire over equities trades made by top officials under Powell's leadership.
On top of that, Warren has come out against Powell directly, calling him a "dangerous" leader who is "soft on banks and on the ethical practices of those who work for him," writes Bloomberg. The other leading Fed chair candidate, Lael Brainard, has views that align more directly with Warren's.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
And despite the fact that Warren's criticisms and the current scandal reportedly haven't directly affected Powell's standing with the White House, and that Treasury Secretary Janet Yellen has endorsed him, Powell's renomination might also "irritate progressives in the midst of sensitive negotiations of [Biden's] multitrillion-dollar social spending package," writes Bloomberg. Ideally, the White House would nominate its candidate for February appointment by late October or early November.
Warren aside, Powell has the support of an otherwise "unsually wide" group, and could still be confirmed if he were renominated, "thanks to widespread support among Republican lawmakers," writes Bloomberg. Ultimately, the nomination decision is Biden's, a point Yellen echoed on Tuesday: "It's up to the president to make the nomination, and the president hasn't yet made that decision."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
India rejects Trump threat over Russian oil
Speed Read The president said he would raise tariffs on India for buying and selling Russian oil
-
NY's Hochul vows response to Texas gerrymander
Speed Read Gov. Kathy Hochul has promised to play ball with redistricting that favors the Democrats
-
August 5 editorial cartoons
Cartoons Tuesday's political cartoons include an unflattering jobs report, Democrat weakness, and the minimum wage
-
India rejects Trump threat over Russian oil
Speed Read The president said he would raise tariffs on India for buying and selling Russian oil
-
NY's Hochul vows response to Texas gerrymander
Speed Read Gov. Kathy Hochul has promised to play ball with redistricting that favors the Democrats
-
Texas Democrats exit state to block redistricting vote
Speed Read More than 51 legislators fled the state in protest of the GOP's plan to redraw congressional districts
-
Trump criticized for firing BLS chief after jobs report
Speed Read Bureau of Labor Statistics chief Erika McEntarfer oversaw a July jobs report that the president claims was rigged
-
Trump revives K-12 Presidential Fitness Test
Speed Read The Obama administration phased the test out in 2012, replacing it with a program focused on overall health rather than standardized benchmarks
-
El Salvador scraps term limits, boosting Nayib Bukele
Speed Read New constitutional changes will allow presidents to seek reelection an indefinite number of times
-
Trump assigns tariffs, delays all except on Canada
Speed Read A 35% tariff on many Canadian goods has gone into effect
-
Harris rules out run for California governor
Speed Read The 2024 Democratic presidential nominee ended months of speculation about her plans for the contest