Jerome Powell was reappointed as head of the Fed

US Central Bank President Jerome Powell was, unsurprisingly, massively reappointed as Fed Governor on Thursday. It is indeed by 80 votes for and only 19 against that he was chosen to continue to lead this institution which brings together the leaders of the 12 federal central banks.

Joe Biden, who declared himself in favor of this nomination in the fall, quickly welcomed the Senate’s decision. While sketching the roadmap of Jerome Powell: the fight against inflation which, at 8.3% in April, remains at levels unknown for forty years.

“I have made it clear that fighting inflation is my top national priority. I am therefore happy to see the Senate take a step forward in my inflation-control program by confirming my appointments to the Fed,” the US president said in a statement. Because Jerome Powell will have at his side other relatives of Joe Biden who had previously been confirmed by the Senate: Lael Brainard as Vice-President and, as Governors, Philip Jefferson as well as Lisa Cook, the first black woman to occupy this function.

Inflation and climate risks at the heart of concerns

A 69-year-old former lawyer and banker, appointed by Donald Trump, Jerome Powell has already warned, in an interview with Marketplace, the daily economic program of public radio NPR, that controlling inflation “will not be done painless “. But that “the most painful would be […] that inflation remains entrenched in the economy at high levels”.

Confirmed by a large majority, it will probably not escape criticism. Some senators criticize him, for example, for not having anticipated either the strength or the persistence of inflation. The left wing of the Democrats had also called on Joe Biden to choose someone else, judging his action in terms of taking climate change into account. Even though one of the priorities assigned to it by the White House will be to fight “against the evolution of the risks linked to climate change”.

The Senate must now decide on the appointment of Michael Barr to the post of vice-president for banking regulation, after Sarah Bloom Raskin, initially chosen, gave up, for lack of sufficient support. Michael Barr will be heard on May 19 by the Senate Banking Committee.

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