The US President Joe Biden officially renominated Jerome Powell to be Chairman of the Federal Reserve. His opponent Dr. Lael Mindard was elected Vice President. This would allow Powell to remain in office for an additional 4 years, subject to Senate confirmation. It also allows him to put his inflation-control agenda to the test.
Jerome Powell: Four more years
Biden announced his nominations earlier today in a statement from the White House. He explained that he was adamant about his decision and credited Powell’s “decisive” action for the US’s rapid recovery and falling unemployment.
The statement reads, “Chair Powell provided steady leadership in an unprecedently difficult period, including the largest economic downturn since modern history and attacks against the independence of Federal Reserve,”
He also expressed appreciation for Powell’s and Brainards “shared belief”, that climate change should be addressed. He said that the Fed’s traditional mandates were to keep low unemployment and low inflation. However, the Fed has “refocused” its goals.
In February 2018, Powell was elected Fed chairman. After serving as the undersecretary of the US Department of the Treasury, Brainard was elected to the Fed board in 2014.
Powell’s response to the global pandemic and lockdowns has prompted unprecedented government stimulus to protect the US economy. Under his leadership, 40% of US Dollars currently in circulation were printed within the past 12 months. Many believe this contributed to the country’s rising inflation, which was at its highest point in 30 years last month.
Powell announced that he will reduce his $120 billion monthly bond purchasing program in order to address rising prices.
Jerome Powell. Source: Barrons
Powell speaks out about Bitcoin
Powell stated last month that he does not intend to ban cryptocurrency, including Bitcoin. He did however agree with Gary Gensler, the chairman of SEC, that stablecoins require regulation.
The chairman had earlier this year recognized Bitcoin as a possible substitute for gold but not the US dollars. It is a “speculative” currency that has been called “speculative” because it does not have the ability to be used as a medium of exchange or store of value.
Bitcoiners disagree, however. However, Senator Cynthia Lummis suggested that Bitcoin could be used to “stabilize” the US dollar which is currently in an unstable state. She claims that it has been in a tailspin under Powell’s leadership. Anthony Pompliano, a Bitcoin Youtuber who regularly covers inflation, advised his followers to “buckle-up” after Powell’s renomination.
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