US lawmakers oppose Powell's re-election as Fed chairman, calling him a "dangerous person"

Source: China News Network

According to the Financial Times, Senator Elizabeth Warren of the Progressive Democratic Party of Massachusetts said on the 28th that she would oppose Jay Powell being nominated as the chairman of the Federal Reserve again, saying that he was a "dangerous person" leading the Fed.

Data chart: On July 11, 2019, local time, U.S. Federal Reserve Chairman Jerome Powell attended the hearing of the Senate Banking Committee. Photo by China News Service reporter Sha Hanting

Warren's opposition to Powell's re-election is a major blow to Powell's hopes of continuing to run the Fed, as it will make it harder for U.S. President Joe Biden to re-nominate Powell without opposition from the Democratic left.

Powell's term will reportedly end in February 2022. Warren has long criticized Powell for his weakness in banking regulation, which she noted is why Powell is unworthy of being Fed chairman.

Warren highlighted several examples of the Fed's easing of financial regulation, including the Fed's decision to revise the liquidity needs of certain Wall Street institutions.

Although Warren is now openly opposed to Powell's re-election, some moderate Democrats still support him, citing the fact that it will ensure stable monetary policy in the context of economic turmoil triggered by the COVID-19 pandemic.

Even some progressive Democrats welcomed Powell's monetary policy because he had taken a more tolerant approach to rising inflation than previous Fed chairmen and insisted on pursuing full employment.