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Fed Chair
Jerome Powell’s big policy speech on Friday is like the business world’s
Super Bowl, which means endless speculation, gossip, and betting in the
week leading up.
One of the buzziest topics: Will Powell’s speech be one of his last
as Fed Chair? Around Labor Day, President Biden is expected to decide
whether to keep Powell in the role after his four-year term expires in
February.
Why you should care: The Fed Chair is the world’s
most powerful economic policymaker. Their every word, hand gesture, and
stray cough is dissected by investors all over the globe, and Fed
Chairs can influence everything from mortgage rates to your grocery
bill.
Where is Biden’s head at?
Most economists think Biden would be scoring an own goal by not reappointing Powell, who is broadly popular.
Biden could
also risk angering some people in his cabinet if he switches gears.
Treasury Secretary Janet Yellen, who ran the Fed before Powell, has
reportedly told White House officials that she supports four more years of Powell—an endorsement that significantly boosts his chances of reappointment.
But Powell has plenty of critics, too. The nonpartisan think tank Better Markets published a report
yesterday that attacks Powell for loosening regulations for big banks
and for ignoring pressing climate change risks (popular criticisms of
Powell from the left). From the other flank, Powell gets heat for
letting inflation rip higher and not acting with more urgency to cool
off a potentially too-hot economy.
In general,
Powell has gotten high marks even among critics for his handling of the
pandemic and for keeping a low profile as former President Trump bashed him several years ago.
What do you think? Should Powell get another four years? Vote here. – NF
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