The
23,000-word report from Better Markets, released ahead of the
Fed's annual Jackson Hole central banking conference, now being
held virtually, highlights Powell's "very poor" record on
banking regulation and his "inexplicably slow" response to
climate-related risks.
It also praises his "exemplary" handling of former President
Donald Trump's attacks on the U.S. central bank's independence,
and takes note of his quick and aggressive action to shelter the
economy from the impact of the coronavirus pandemic and the
benefits of the Powell-led Fed's new focus on boosting the labor
market.
Entitled "Should Federal Reserve Chairman Jay Powell be
Reappointed," it never answers its own question. Dennis
Kelleher, who runs what the New York Times once called "Occupy
Wall Street's suit-wearing cousin," says that's on purpose.
Kelleher, who was a member of the transition team for
then-President-elect Biden and Vice President-elect Kamala
Harris, said the aim is "to push for a very robust process that
is substantive, comprehensive and thorough." Biden will need to
make a decision one way or the other in coming months, as
Powell's term is up in February.
Progressive voices calling on Biden to replace Powell typically
focus on what they view as an unwarranted easing of banking
sector regulation under the Fed chief's watch, a view that
Kelleher shares, and what they see as a less-than-proactive
approach to climate change compared with other global central
banks.
But they also blame the Fed for exacerbating wealth inequality
by boosting the value of assets like stocks. On that score, the
Kelleher report is decidedly less critical, noting that the
Powell-led Fed's pledge not to tighten monetary policy until the
economy reaches maximum employment should in the long run help
close the wealth gap.
With no clear timetable from the Biden team on an announcement
about the top Fed job, Powell's backers and critics have begun
to fill the void and make their preferences public. Republican
Senator Steve Daines of Montana last week became the first
member of the panel that will review the appointment to call for
Powell's reappointment.
(Reporting by Ann Saphir in San Francisco; Editing by Paul Simao)
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