Fed’s Powell secures a second term as inflation rages

Source: Politico | May 12, 2022 | Victoria Guida

Powell was confirmed in a bipartisan 80-19 vote

The Senate on Thursday overwhelmingly voted to give Federal Reserve Chair Jerome Powell a second term, keeping him atop the world’s most important central bank as he wages a risky battle against the highest inflation in 40 years.

Powell has already kicked off a campaign of interest rate increases designed to rein in spending and slow growth in the hopes of taming surging prices, a move that many fear will tip the economy into recession. But the central bank has faced heat for being slow to react even as inflation showed signs of broadening across the economy last fall.

Still, senators continue to support the Fed chair, approving him for another four years in a bipartisan 80-19 vote. Indeed, the central bank was not alone among professional forecasters last year in expecting inflation to begin to cool sooner, based on inaccurate projections that supply chain snarls would subside more quickly. Those pandemic-induced problems have been made even worse by Russia’s invasion of Ukraine and lockdowns in China.


Viewing 1 post (of 1 total)
  • Discussion
  • Consistent #53549

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.