Senator Elizabeth Warren, who stands out as an influential figure among the Democrats, announced that she would oppose Fed Powell’s second term presidency.
US Democrat Senator Elizabeth Warren called Fed Chair Jerome Powell a “dangerous man” and said he would not support Powell to continue in office for a second term.
Addressing the Senate Banking Committee on Tuesday, Warren, the highest-profile senator in his party, told Powell, “Your record worries me seriously. “You have acted in a way that makes our banking system less credible, and that makes you a ‘dangerous man’ to run the Fed, and that’s why I will oppose your re-election.”
Speaking to Bloomberg after the session, Warren said, “Fed President should be like a guard watching the doors, he should prevent banks from taking risks that could collapse the entire economy.”
However, it is known that US President Joe Biden asked to keep Powell for a second term, whose term expires in February. US Treasury Secretary and former Fed Chair Janet Yellen also supported Powell in maintaining his position. It is unclear at this stage how Warren’s lack of support for Powell will affect the outcome.
Most Democrats Support Powell’s Presidency
There seems to be considerable support from the Senate for Fed Chairman Jerome Powell, whose term will expire in February, to continue for a second term. Bloomberg’s interviews with many senators pointed to Powell’s growing support among Democrats. In addition, it seems that it will not be easy for Powell to gain the support of conservative Democrat Senator Joe Manchin along with Warren.
Manchin told Bloomberg about his trillions of dollars in asset purchases, “What we’ve done over the past year just doesn’t make any sense to me. Why are we buying our own bonds at a time when the market is stronger than ever before?
In a letter to Powell, Manchin called for him to downsize the bond-buying program.