Jerome Powell to repeat second term at Fed

The chairman of the US central bank won the support of a majority of senators with 80 votes in favor and 19 against. Powell took over as chairman of the Fed in 2018 after being appointed by the then-Republican chairman. donald trump (2017-2021) and was nominated again in November 2021 by current president Democrat Joe Biden.

Both Democrats and Republicans praised Powell’s administration during the election. caused by the economic crisis implemented an extraordinary monetary stimulus plan before and during the pandemic.

The US central bank kept interest rates between 0% and 0.25% for two years. to stimulate the economy; however, it has already approved two consecutive increases. Thus, the official interest rate of the world’s largest economy is currently between 0.75% and 1%. The Fed has predicted further rate hikes to slow economic activity enough to fight inflation, but not push the US into recession.

Powell was expected to be confirmed without a hitch in the Senate banking committee in March, with almost unanimous support from Democrats and Republicans. single person voted against him, then it was Senator Elizabeth Warren, Those who see Powell as a “dangerous man” will lead the Fed as he cuts down on financial regulations, such as annual checks used to examine whether large US banks can withstand a severe recession.

Warren returned this Thursday to vote against Powell, whose candidacy was rejected by other Democrats, such as Cuban-born Senator Bob Menéndez. Menendez was considered “It’s a shame” that in its 108-year history a Latino has not been appointed to lead the Fed, according to the senator’s statement.

Inflation in the US remains at historical levels not seen in four decades, although slightly moderate in April, at 8.3%, two-tenths less than in March, according to Commerce Department data released Wednesday. Meanwhile, In April, unemployment in the US was 3.6% of the workforce, the lowest in two years.