Jerome Powell has been given extraordinary discretion to lead the government’s effort to stave off a deep recession.
Federal Reserve Chair Jerome Powell spent more than a year as a punching bag for President Donald Trump, who once said the central bank chief had “no ‘guts,’ no sense, no vision!” for failing to turbocharge the economy.
Now, Powell has been given extraordinary discretion to lead the government’s massive effort to stave off a deep recession sparked by the coronavirus pandemic. And Trump — for now — has changed his tone, telling reporters last month that he had called Powell to tell him he’s doing a good job.
“He’s really stepped up,” the president said.
The Fed chief’s dogged refusal to get drawn into the political fray by ignoring Trump’s taunts, as well as his good relationships with lawmakers from both parties, has put him in a unique position to shepherd the economic rescue in a nonpartisan way.
But the vast power that Washington has handed to Powell will also likely make him a scapegoat once again if his mission falls short. Already, the Fed has started to draw fire from policymakers and watchdogs on the left — many of whom defended him against Trump’s relentless broadsides — like House Financial Services Chairwoman Maxine Waters (D-Calif.), Sen. Elizabeth Warren (D-Mass.) and a member of a congressional oversight commission tracking the funds. That criticism is sure to grow.
………
- Discussion
-
Federal Reserve Chairman Jerome Powell has been given extraordinary discretion to lead the government’s massive effort to stave off a deep recession https://t.co/dOWcqEAcBu
— POLITICO (@politico) April 20, 2020
You must be logged in to reply to this topic.