Jerome Powell confirmed for a second term as Fed Chairman

Federal Reserve Chairman Jerome Powell has been confirmed for a second term as head of the central bank. (Photo by JIM WATSON/AFP via Getty Images)

AFP via Getty Images

Text size

The Senate confirmed Jerome Powell to a second term as Federal Reserve Chairman in an 80-19 vote on Thursday.

His widely expected bipartisan confirmation keeps him at the helm of the central bank as inflation continues to hit its highest rate in four decades.

As part of moves to end pandemic-related stimulus and calm inflation, the Fed has hiked interest rates twice this year, including by half a percentage point this week. last, and Powell said additional half-point increases were possible.

The Ministry of Labor announced on Wednesday that the consumer price index increased by 0.3% in April, and that inflation fell slightly to an annual rate of 8.3% in April, but was still high.

Powell, 69, was named to the Fed’s board of governors by former President Barack Obama and named chairman in 2018 by former President Donald Trump.

All but one of the Senate Banking Committee members, Sen. Elizabeth Warren (D., Mass.) endorsed his confirmation in a 23-1 votes March 16.

The Senate on April 26 confirmed Fed Governor Lael Brainard as vice chairman of the seven-member board, and economists Lisa Cook of Michigan State University and Philip Jefferson of Davidson College to two other vacancies on the Board of Directors.

President Joe Biden also named Michael Barrformer Treasury Department official and key architect of the 2010 Dodd-Frank financial regulatory overhaul and the Consumer Financial Protection Bureau, will be the Fed’s official vice president of banking supervision, its main banking regulator. Former Biden candidate for this role, Sarah Bloom Raskin, withdrew his candidacy after Sen. Joe Manchin (D., W.Va.) said he opposed his views on climate change.

Barr is currently a professor of law at the University of Michigan and dean of the university’s Ford School of Public Policy. His confirmation hearing is set for May 19.

Write to Janet H. Cho at [email protected]

Michael J. Chiaramonte