Dodd-Frank architects call for reappointment of Fed’s Powell

0
37
Dodd-Frank architects call for reappointment of Fed’s Powell
Advertisement


Investing.com - Financial Markets Worldwide

Please try another search


Economy2 hours ago (Sep 13, 2021 09:21PM ET)

Dodd-Frank architects call for reappointment of Fed's Powell
© Reuters. FILE PHOTO: Federal Reserve Chair Jerome Powell testifies during a U.S. House Oversight and Reform Select Subcommittee hearing on coronavirus crisis, on Capitol Hill in Washington, U.S., June 22, 2021. Graeme Jennings/Pool via REUTERS/File Photo

By Howard Schneider

WASHINGTON (Reuters) – The Democratic architects of a key overhaul of U.S. financial regulation a decade ago called on President Joe Biden to reappoint Fed Chair Jerome Powell to a second term, rebuffing arguments he has been weak on regulatory issues.

Former U.S. Senator Christopher Dodd and former U.S. Representative Barney Frank wrote in an opinion article in The Hill https://www.google.com/search?q=massachuessets&rlz=1C1GCEB_enUS959US959&ei=uOI_YfLKNumr5NoPucOYwAs&oq=massachuessets&gs_lcp=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&sclient=gws-wiz&ved=0ahUKEwjyhoeKkf3yAhXpFVkFHbkhBrgQ4dUDCA4&uact=5 newspaper that changes to their signature Dodd-Frank law under Powell “were not major attacks, and nothing in Powell’s performance contradicts his assertion that he supports the basic framework we put in place.”

The 2010 law was the core legislative reform to grow out of the 2007-2009 financial crisis, and included trading restrictions on banks, stricter risk management, and efforts to ensure that taxpayers would not have to bail out large financial institutions again.

Several of those rules were relaxed during Powell’s tenure, leading some Biden supporters to encourage a change in Fed leadership.

Powell’s term expires in February. The Biden administration has not announced a timetable for deciding whether to reappoint or replace him.

Dodd and Frank noted that if Biden wants to pursue a different regulatory approach, he could appoint a new Fed vice chair for regulation and supervision, replacing Randal Quarles, a Donald Trump appointee and current vice chair.

They argued that more important, Powell’s approach to monetary policy – downplaying the risk of inflation in favor of encouraging stronger employment gains – would help Biden achieve his broader economic goals. As a Republican, Powell’s voice on that issue would carry particular weight.

“For moderate Democrats, Powell offers … a much bigger shield against conservative accusations of fiscal irresponsibility than the same actions coming from a newly appointed liberal,” they wrote, as well as “reassurance for those genuinely worried about rising prices.”

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read More

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here