Some Democrats are weighing the possible reappointment of Federal Reserve Chairman Jerome Powell, the Financial Times reports, citing California Democratic Congressman Brad Sherman.
"The Committee has stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2%."
“I’ve lived through two economic crises in Congress: 2008 and 2020. And 2020 was handled much better,” said Sherman. House members don’t vote on Federal Reserve appointees, but Sherman “suspects” Powell will get a second term and warns colleagues about negative political repercussions in 2022’s midterm elections if reappointment fails.
The dilemma for some Democrats is whether there is a candidate to replace Powell who could win Senate confirmation and be at least as dovish as him while not distracting Congress from advancing President Joe Biden’s economic agenda, the Financial Times reported, citing unidentified observers of Capitol Hill.
